Fundamentals of Risk Management

Risk practitioner 
competencies
Competency frameworks
Risk management is increasingly seen as a profession, rather than a set of activities. 
For any profession, it is essential that a set of competencies is established that defines 
the activities that practitioners within the profession will need to display. There are 
several styles and formats for competency frameworks, but most are based on the 
stages that are involved in the practice of the profession. Having identified the stages 
that are involved in the profession, the levels of competency required at different 
stages of seniority are then described.
It is generally accepted that there are technical or hard skills that are required
by individuals working in any profession, together with the range of people or soft 
skills that are required in order to become a successful practitioner in the profession. 
In short, the risk practitioner needs more than technical competence in order to
successfully assist an organization with the design and implementation of a risk 
management framework.
Two areas of technical skills are required by a risk practitioner. Firstly, and most 
obviously, the practitioner needs to have competency across a range of risk manage-
ment issues and activities. He or she will also need a range of business skills in order 
to understand the external context and internal context within which the organiza-
tion operates. An understanding of business and the development of appropriate 
business skills is essential if the risk management practitioner is to successfully develop 
an appropriate risk management process and supporting risk management frame-
work or internal context.
This textbook is not about the development of business skills, so the greater
focus is placed on the risk management technical skills that will be required by the
risk practitioner. These risk management technical skills will be closely aligned with 
the stages in the implementation of a risk management initiative, as set out in 
Appendix C. Table 27.1 provides an overview of the risk management technical 
skills that will be required by a successful risk management practitioner.