Leadership Development in Risk Management - Insights from the 2017 Global Practice Analysis - Latin American Risk Congress

Sep 4, 2026

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Leadership Development in Risk Management presents insights from GARP’s Global Practice Analysis, focused on strengthening leadership capabilities across the risk management ecosystem. The material outlines how professional certifications (FRM, ERP) and global benchmarking initiatives support a practitioner-driven, education-led profession. It maps key governance, risk, compliance, internal stakeholders, and external players, describing responsibilities such as defining risk objectives, setting and monitoring risk limits, ensuring adherence to Basel and accounting standards, and supporting model control and validation. The outlook emphasizes developing future leaders through knowledge, experience, communication, and continuing education.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages46

Reading Time1 h 56 min

AccessFree to download

Leadership Development in Risk Management

Professional Certifications (FRM and ERP)

GARP Benchmarking Initiative (GBI)

Risk Institute (GRI)

Risk Management Ecosystem (“GRC”)

Internal Stakeholders

External Players

Developing Future Leaders in Risk Management

Leadership Development in Risk Management Insights from the 2017 Global Practice Analysis Latin American Risk Congress Michael Sell Global Head of Institutional Outreach and Business Development September 4, 2018 GARP is an Independent Non-Partisan Association Our mission is to advance the risk management profession through education, research and the promotion of best practices globally. • Founded 1996 • Not-for profit • 150,000 members • 195 Countries • Globally recognized certifications (FRM, ERP) foster meritocracy in the risk profession • Quality oversight (21 member Board) • Practitioner Orientated • Respected objective industry convener GARP DOES NOT LOBBY OR ENGAGE IN CONSULTING ACTIVITIES Leadership Development in Risk Management 2 Professional Certifications (FRM and ERP) GARP Benchmarking Initiative (GBI) GARP Risk Institute (GRI) Global Interest in Risk Certification is Strong and Growing Leadership Development in Risk Management 4 Risk Management Ecosystem Risk Management Ecosystem- “GRC” | •
•
• | Governance
• Board of Directors and CEO set the tone
• Risk committee defines strategic risk objectives
• CRO reports to or is part of the risk committee
Risk Management
• Risk takers
• Recommend risk limits
• Adjust risk exposures based on market conditions and feedback from risk managers
• Risk managers
• Approve risk limits
• Monitor, measure and report risk, validate models, communicate results
Compliance
• Adherence to internal and external rules and procedures
• Government oversight and regulation (Basel Framework)
• Accounting standards (GAAP/IFRS)
• Legal documentation and contracts (ISDA) | | --- | --- | Leadership Development in Risk Management 6 Internal Stakeholders • Risk management • Market, credit, operational, and enterprise risk • Model control • Construction, validation and backtesting • Treasury • Analyze the firm’s funding and liquidity policies and exposures • Regulatory compliance • Fundamental understanding of Basel regulations • Audit • Analyze adequacy of firm’s risk controls and processes Leadership Development in Risk Management 7 External Players • Government regulatory agencies • Global standards – Basel • Local markets • Financial market exchanges • Trading. price transparency and market liquidity • Central clearing • Accounting and consulting firms • Audit and regulatory compliance • Risk-based technology solutions • Academic Institutions • Risk education and research Developing Future Leaders in Risk Management • Knowledge • Required to perform essential risk management tasks • Experience • Markets, current trends and historical context • Professional development • Communication skills are critical • Continuing education – lifelong learning Insights from GARP’s Global Practice Analysis

FAQs

What is the purpose of GARP in advancing risk management?

GARP advances the risk management profession through education, research, and promotion of best practices globally.

How does the document describe the GRC risk management ecosystem?

It covers governance, risk management, and compliance, detailing roles like board and CEO tone setting, risk committees defining objectives, and monitoring and reporting risk exposures.

What skills does the document highlight for developing future risk management leaders?

It emphasizes knowledge, practical experience in markets and risk tasks, professional development, strong communication skills, and continuing education as lifelong learning.

Sep 4, 2026

Upload by McQueen