A featured contribution from Leadership Perspectives: a curated forum reserved for leaders nominated by our subscribers and vetted by the Construction Tech Review Advisory Board.
OMERS
Transforming Risk Solutions with an Insight-Driven Approach
Leeanne Barnes is a seasoned professional with over 20 years of expertise in enabling strategic risk management thinking within dynamic organizations. She excels at developing agile risk management programs that prioritize transparency and data-driven decision-making. Her extensive skill set encompasses operational and enterprise risk management, corporate governance, fraud risk management, procurement, vendor risk management, outsourcing, and leading diverse teams across various industries. Leeanne also has extensive knowledge of Sarbanes Oxley/internal controls over financial reporting, compliance, information security, business continuity, disaster recovery, product development, change management, and process engineering and optimization. Furthermore, as a conference panelist and speaker, Leeanne actively contributes to the risk management community, sharing her insights and best practices.
Please describe your journey within the risk management space and the roles and responsibilities you hold in your current role.
I began my career in risk management by working at Deloitte in risk consulting and regulatory services. Later on at Tangerine, a financial institution, I gained valuable experience in various non-financial riskrelated roles such as Head of Operational Risk, Head of Information Security, Fraud Management, and Business Continuity. After that, I spent seven years at the Ontario Teachers' Pension Plan, where I headed Enterprise Risk Management and worked on initiatives such as risk appetite, strategy alignment, and environmental, social, and governance considerations. Throughout my professional journey, I have had the opportunity to take on operational responsibilities, which has allowed me to strike a balance between business and risk perspectives.
I am currently the Vice President of Enterprise Operational Risks at Omers, a Canadian pension plan with over 500,000 members. In this role, my primary responsibility is to provide an objective assessment of the organization's critical risks while working with the business to drive change.
In your opinion, what are some of the challenges associated with implementing an effective risk management strategy, and how do you proceed to mitigate them?
Risk management was historically viewed as a hindrance, restricting the possibilities for the company. However, we strive to change this perception and transform risk management into a proactive driver, enabling the business to progress swiftly while effectively identifying and addressing potential risks and opportunities. It is crucial to ensure a clear understanding of the risk management function's role and mandate in an organization. This could be achieved with open communication and emphasizing the value proposition of risk rather than seeing it as a barrier.
It's essential to know that success lies in assembling the right team, as people are the most valuable asset within risk functions. By fostering a strategic, thought-leading, and data-driven approach focused on opportunities, we can reshape the perception of risk management and position it as a trusted partner to the business.
What are the major factors that play a key role in enhancing the risk analysis and assessment capabilities of businesses?
It may be easy to say, but executing effective risk management strategies can be challenging. In today's rapidly growing world, considering factors such as geopolitical considerations, climate change, and advances in artificial intelligence and machine learning, risk identification and response are essential. A valuable aspect of the risk function is its ability to gather information from across the organization and external sources, enabling the identification of significant cross-functional opportunities that can benefit the business. Risk teams have the advantage of seeing across organizations and providing a comprehensive view.
In my twenty years of experience in senior risk roles, I have witnessed the growing importance of both internal and external prospects on people, processes, and technology. It is essential to monitor key trends and emerging risks not only from a business continuity standpoint but also from a broader strategic and opportunity perspective. By developing emerging risk scenarios and assessing their potential impacts, risk teams assist organizations in adopting a proactive management approach. Collaboration, trusted partnerships, effective communication, and anticipating future challenges are crucial elements for successful risk analysis and assessment. Communication plays a pivotal role in providing the right information to the right people at the right time, facilitating informed decision-making.
In order to minimize the impact of technological advancements such as cognitive technologies, artificial intelligence, and data analytics on the landscape of risk management, what measures do you take?
Artificial Intelligence (AI) and Machine Learning (ML) present tremendous opportunities for organizations, but they also come with inherent risks. There are several crucial aspects to consider, including privacy considerations, data governance, and cybersecurity. My approach is centered around establishing frameworks and governance for new and emerging technologies. This includes developing robust models and model governance strategies, as well as creating dedicated forums such as working groups or committees. Space where key business partners can gather to discuss the potential opportunities and threats posed by these technologies, effectively navigating the challenges and leveraging the benefits of these emerging trends.
Can you share a few of your prior experiences that enabled you to perform strategic risk management and develop programs that are agile and allow transparent and data-driven decision-making?
At my previous organization, we emphasized the importance of aligning risk and strategy, recognizing the mutual impact they have on each other. Risk management excels at scanning both internal and external environments, providing valuable insights to the strategy team. Similarly, changes in strategy can introduce new enterprise risks that require consideration, monitoring, management, and reporting. This necessitates assessing the capabilities in place or identifying areas where additional resources are needed.
A significant focus of mine has been driving data-driven insights in non-financial risk management. While investment risk is typically quantitative, operational risk tends to be more qualitative. However, I have strived to integrate data more effectively into the non-financial risk landscape. By articulating risk appetite through qualitative statements and utilizing quantitative metrics like Key Risk Indicators (KRIs) with defined tolerances, we can provide business leaders with priorities and resource requirements.
Integrating risk priorities into budgeting and resource allocation becomes a crucial input for strategy-setting and decision-making.
Cultivating a culture that encourages learning is optimal for a risk-focused organization, empowering individuals to proactively uncover invaluable lessons and boundless possibilities
Additionally, an agile approach is essential for risk teams. Looking both top-down and bottom-up ensures that important issues are not overlooked. Establishing appropriate forums for discussion, such as operations committees or enterprise risk committees, plays a vital role in facilitating effective risk management.
In the coming years, how do you envision the risk management arena evolving?
In today’s rapidly evolving landscape, the increasing availability and utilization of data are playing a crucial role in driving organizational improvement. Data analytics is becoming vital as access to both internal and external data expands. This transformative shift necessitates a change in the roles of individuals, shifting their focus to making informed, data-driven decisions. While this transition towards an insight-driven approach is undeniably exciting, it also introduces new risks and challenges that organizations must navigate.
The impact of technology and processes within organizations is increasing as they become more technologically savvy. Factors such as cyber risks, geopolitical risks, and climate change pose ongoing challenges. This shift not only requires a different skill set but also demands a reassessment of the types of individuals and roles necessary within the organization. To succeed, organizations must be able to adapt quickly and in an agile manner, ensuring alignment with their strategies, objectives, and vision, while ensuring that the right data reaches the right individuals in a manner conducive to effective decision-making. This is where risk management plays a critical role, as it is ideally positioned to understand the perspective of the organization and works closely with various divisions and business units. This collaboration and partnership have the potential to yield powerful results.
What advice would you give budding professionals in the risk management industry?
The advice I would offer is to confidently express your opinions, maintain a receptive attitude towards listening and learning, and demonstrate adaptability as you progress. Risk management encompasses various intriguing facets, particularly within the ever-shifting technology landscape, making it essential to have subject matter experts involved in discussions. It is critical to distinguish between risk functions and business functions, including information technology. Establishing interaction frameworks supports efficiency and effectiveness, ensures the right individuals participate in discussions, and clarifies decision-making authority.
Additionally, embrace the concept of failing fast and prioritize learning and seizing opportunities. For a risk-focused organization, cultivating a learning culture that empowers individuals to actively identify lessons and opportunities is crucial. This approach enhances risk consciousness and fosters a culture of continuous learning.
