Red alert to boards – a growing number of best/brightest are avoiding risk/IA careers. Some currently in RM/IA roles are unhappy and actively seeking other career opportunities. Today’s post asks Chat GPT why.
TIm
Why do many see risk management and internal audit as unattractive careers?
ChatGPT
Risk management and internal audit are often seen as unattractive careers for several reasons:
1. Perception of Mundanity: These fields are sometimes perceived as monotonous and bureaucratic. Risk management and internal audit often involve repetitive tasks, such as compliance checks, policy reviews, and documentation, which can be seen as less exciting compared to other careers.
2. Negative Stereotypes: There is a stereotype that these roles are more about finding faults and being the "police" within an organization rather than adding value or driving positive change. This can lead to a perception that the work is negative or confrontational.
3. Lack of Visibility and Recognition: Unlike more glamorous fields like marketing, finance, or tech development, the work of risk managers and internal auditors often goes unnoticed until something goes wrong. Success in these roles is typically the absence of problems, which can be less rewarding or visible compared to roles where achievements are more directly celebrated.
4. Misunderstanding of the Role: Many people, including students and career seekers, do not fully understand what risk management and internal audit entail. The complexity and importance of these roles are often overlooked, leading to a lack of interest.
5. Career Progression Uncertainty: There is sometimes a perception that career progression in these fields is less clear or slower compared to other sectors. This can deter individuals who are ambitious and looking for rapid advancement opportunities.
A growing number of companies have relegated IA to SOX/SOX like controls policing roles. Many require risk functions create/maintain/report risk lists/risk heat maps/bad things that might happen, and police MGMT’s “risk appetite”. This is compounding already negative RM/IA stereotypes listed by Chat GPT and declining RM/IA job satisfaction.
Objective centric ERM and IA focused on helping MGMT/boards make better decisions how to best manage uncertainty linked to MISSION CRITICAL OBJECTIVES (top strategic/value creation and preservation objectives) has great potential to increase attractiveness of RM and IA as careers; and help RM/IA professionals increase their stature, value add, and job satisfaction.
Boards that care about quality of information they get on risk/uncertainty linked to achievement of MISSION CRITICAL OBJECTIVES from RM/IA need to have frank discussions with CROs and CAEs about this disturbing trend; and current RM/IA methods/image causing it. Shareholders/stakeholders that depend on boards to oversee RM and IA deserve no less.
Consultant at Consulting
5yIIA should be nimble enough to pivot to objectives from risk to be on the cutting edge of internal Audit thought leadership. This will also put on a positive view of life as an auditor not have to be, “chicken little” running to the king 🤴 always to warn about things that may never materialize and typically don’t.