Table 3 Example competency framework for...

Table 3

Example competency framework for a manager (not-specialising in risk) showing risk competence in detail

Example competency framework
	Behaviour/indicator	Knowledge	Skill
Risk competence	Identifies and describes the risks in their area of responsibility	Risk assessment techniques (inspections and audits, questionnaires and checklists, workshops and brainstorming) Risk Vocabulary Risk Management Process Risk Classification Systems (e.g. COSO/FIRM) Environment Analysis (understand the risk internal and external context with tools like PESTEL)	Observation, Interviewing, Brainstorming, Groupwork, Communication, use of technology (e.g. Spreadsheet) to support the risk management process Analytical skills Problem solving skills Business Process Mapping
	Estimates/analyses risk -to determine or judge its probability and impact	Risk Calculation (e.g. EMV) Descriptive statistics/probability theory Opportunity assessment Risk Matrices	Calculating/estimating probability Calculating/estimating impact Apply risk assessment techniques Judgement (of likelihood and impact)
	Evaluates risk(s), to inform decision making and selects risks in need of treatment	Risk appetite Risk Criteria Business Goals	Risk evaluation (interprets goals, risk appetite, risk criteria and level of risk to decide whether the risk is significant and also whether to control it)
	Selects or designs controls (or treatments), to reduce the likelihood and/or impact of harm to tolerable levels	Risk Control Theories Nature of Internal Control Types of controls Types of insurance cover Residual Risk concept Decision strategies Investment Appraisal Techniques Budgeting	Risk Decision-Making Change and Project Management Creativity – to build controls
	Collects/uses information to reduce uncertainty, build resilience and inform decision-making	Business Resilience Continuity and Crisis Management Uncertainty modelling/Monte Carlo Simulation	Business Impact Analysis Monte Carlo simulation Modelling uncertainty) Group work/facilitated workshops

Example competency framework
	Behaviour/indicator	Knowledge	Skill
Risk competence	Identifies and describes the risks in their area of responsibility	Risk assessment techniques (inspections and audits, questionnaires and checklists, workshops and brainstorming)Risk VocabularyRisk Management ProcessRisk Classification Systems (e.g. COSO/FIRM)Environment Analysis (understand the risk internal and external context with tools like PESTEL)	Observation, Interviewing, Brainstorming, Groupwork, Communication, use of technology (e.g. Spreadsheet) to support the risk management processAnalytical skillsProblem solving skillsBusiness Process Mapping
	Estimates/analyses risk -to determine or judge its probability and impact	Risk Calculation (e.g. EMV)Descriptive statistics/probability theoryOpportunity assessmentRisk Matrices	Calculating/estimating probabilityCalculating/estimating impactApply risk assessment techniquesJudgement (of likelihood and impact)
	Evaluates risk(s), to inform decision making and selects risks in need of treatment	Risk appetiteRisk CriteriaBusiness Goals	Risk evaluation (interprets goals, risk appetite, risk criteria and level of risk to decide whether the risk is significant and also whether to control it)
	Selects or designs controls (or treatments), to reduce the likelihood and/or impact of harm to tolerable levels	Risk Control TheoriesNature of Internal ControlTypes of controlsTypes of insurance coverResidual Risk concept Decision strategies Investment Appraisal Techniques Budgeting	Risk Decision-MakingChange and Project ManagementCreativity – to build controls
	Collects/uses information to reduce uncertainty, build resilience and inform decision-making	Business ResilienceContinuity and Crisis ManagementUncertainty modelling/Monte Carlo Simulation	Business Impact AnalysisMonte Carlo simulationModelling uncertainty)Group work/facilitated workshops

Note(s): As a manager, consider adding approximately 10–15 other competencies, e.g. Communication, Problem-solving, Influencing others, Leadership, Change management, Decision making

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