Danny Whyte CA, client manager and risk specialist at Moggs Accounting + Advisory, was drawn to the dynamic nature of the challenges inherent in risk management.

“I enjoy identifying, analysing and mitigating complex risks that range from cybersecurity to climate change,” he says. “It requires creative thinking and innovative strategies – and it’s also very intellectually rewarding to work closely with senior executives, influencing decision making and shaping organisational strategies. There’s a growing demand for risk specialists, which offers job prospects and career growth. It’s also very different from traditional accounting, so it provides a nice mix.”

Risk specialist Natalie Johnston FCA, CFO at the Department for Energy and Mining SA, started her career in external audit, followed by internal audit then risk and assurance.

“I’d been involved in the identification and treatment of risk all through my career, though my CV wasn't really showing that,” she says. “I decided to cement risk as an expertise by completing the Institute of Chartered Accountants’ [now CA ANZ] Risk Specialisation course through the University of New South Wales. This has made a huge difference to the way people view my experience and has proved particularly valuable for my board and audit committee work.”

Whyte, who also completed the CA ANZ Risk Specialisation Program, finds that it opens doors and creates new opportunities.

“The networks you build can also be very helpful in the current environment,” he says.

The demand for risk specialists is being driven by a number of factors, below.

Rising costs

“Inflation and other pressures are forcing companies to cut costs where they can, including the cost of mitigating risk,” says Whyte. “Many need help with allocating their resources in the most effective way.”

Greater emphasis on risk is also leading boards and audit and risk committees to seek specialist input.

“Boards need to establish the company’s risk appetite,” says Johnston. “This will provide management with clear guidelines as to what they need to escalate and what they can deal with in-house.”

Regulation

State and federal government regulation is constantly changing and increasing.

“Businesses need resources in place to ensure they’re not at risk of non-compliance,” says Whyte.

More boards are including a risk expert in their skills matrix.

“This is a significant change in oversight and part of the evolution of the focus on risk,” says Johnston. “The financial services sector and insurance companies had to monitor their risk more closely after the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, then both they and non-financial organisations realised there was much to be gained by paying more attention to non-financial risk.”

Climate change

Climate change and environmental risk has led organisations to call on risk specialists more often, to share their expertise.

“A growing emphasis on sustainability, coupled with the global push towards net zero carbon emissions, are putting pressure on companies to assess and manage the related risks,” says Whyte. “These are wide-ranging, encompassing threats such as regulatory risk, reputational risk and physical risk operations.”

Economic volatility

Global economic volatility, trade tensions, political instability and even the threat of another pandemic are all compounding risks for businesses of all sizes.

“Small and medium businesses may be facing many of these risks for the first time,” says Whyte. “They need specialist help to prioritise and address them cost effectively.”

Technology

Digital transformation and new technologies such as AI have created a new wave of cyber threats.

“Risk specialists can add value to an organisation by identifying the risks and establishing whether they have adequate controls in place,” says Whyte. “They can also provide impartial recommendations on how and where to invest.”

What does it take to become a risk specialist?

Whyte believes that a successful risk specialist offers a wide range of skills and qualities.

“You must be a critical thinker and very good at problem solving – analytical with a high level of attention to detail,” he says. “You need to know all about regulation and risk management frameworks and have some technical expertise, especially around cybersecurity. You also need excellent communication skills and to be adaptable, because the parameters are always changing.”

Johnston sees specialising in risk as a way of thinking.

“When you have the toolkit, you can apply it to any sector by having the right conversations with the right people,” she says. “You don’t have to be an expert; you just need to know the questions to ask to set up a risk workshop or risk discussion, where you can draw out all of the things that could go wrong.”