The very nature, nay, notion of risk inherently encompasses an extremely wide-ranging and diverse set of small and not-so-small variables; each idiosyncratically disproportionate in regards to their eventual impact to any given argument.
In other, less verbose, terms, risk is a complex and nuanced matter.
With that, one of the major themes of any Comrisk gathering is how risk as a formalised function adapts over the years.
Mike Stark is a risk professional at the very top level with lengthy stints at a number of large trading houses is a frequent contributor in leadership discussion circles in the sector.
"And more recently Cyber Risk. Risk Management has grown into a profession and now includes the post of Chief Risk Officer at Board level."
We thought we'd pick his brain on a number of topics to get you in the mood for reflection.
You’ve worked most of your career in the commodity sector, in particular risk management roles. What sort of changes have you witnessed over the years (could be in the approach to risk management, the tools, some market changes, etc.)?
Having worked many years in commodities, particularly risk management, there have been considerable changes. Aside from the technological advances and increased sophistication in the markets, Risk has developed from centring around the traditional market risk and credit risk to significantly developing levels of awareness and expertise in Operational Risk, Enterprise Risk, Regulatory Risk and Strategic Risk. And more recently Cyber Risk. Risk Management has grown into a profession and now includes the post of Chief Risk Officer at Board level.
"...don’t neglect your own personal development, keep up to date at all cost."
During your time at Petroineos, you built up the risk management function from the ground up. What would your advice be to anyone developing a risk department from scratch (top priorities)?
My main advices would include: build strong relationships; remain engaged at all times in the business; be efficient with your time and pragmatic in your approach, constantly realigning to the business; persevere; don’t neglect your own personal development, keep up to date at all cost; take your time to find the right people, especially your direct reports.
You’ll be present at ComRisk next May in London, what made you want to join the Forum again?
ComRisk has relevant agendas and knowledgeable speakers. It pulls together the whole commodity risk discipline to provide plenty of different perspectives on important topics and facilitates interaction between delegates. Always plenty of discussion to have with new and existing contacts.
For more lively debate, why not book your place at Comrisk 2019 -- It's free!