The IERP® Monthly Newsletter July 2018 8
He recalls a time he was kicked out of a meeting by a boss for pushing for an unwanted plan, only for the plan to be approved two weeks later after a productive chat with the boss in the Surau. Creating structures and processes is one thing, but convincing the relevant decision-makers of the strategic necessity of certain steps to be taken is another. “Risk management is an art, not a science,” he says.
Recognising that managing risk is also about managing business in general, he hopes to establish a more forward-thinking ERM approach at KPS, without an over-reliance on analytics. KPS, which has engaged in regular corporate exercises over the past few years and is geared towards further growth, currently seems to be an appropriate company for Mr Shahari to utilise this approach.
Whereas in FGV his job scope was more focused, the diversified assets of KPS—in manufacturing, trading, licensing, infrastructure and utility, oil and gas, and telecommunications—make his responsibilities all the more varied and difficult. “I would say that’s my top challenge here: keeping abreast of the diverse industries, and also keeping abreast of the factors affecting each industry and business.” At the same time, he credits KPS Management and the Board Risk Committee for their support in ensuring good risk governance is applied throughout his tenure.
But Mr. Shahari seems to be taking it all in stride: “Job knowledge is job satisfaction,” he states. That is, being informed at all times allows him to not only be an effective risk manager, but also to make the most of his job. He emphasized that a risk manager can’t just look to internal factors in an organisation; they also have to look to the external: market volatility, geopolitical risks, and so on.
To risk practitioners, “don’t just stay in one place,” he advises. “Thank God I’ve had the opportunity to rotate myself professionally, from internal audit to corporate planning, to marketing, to risk and BCM.” It has allowed him to develop flexibility, a useful trait in a job that requires one to not only see the big picture, but to make links between all the different components of an organisation. “If a person wants to do risk management, they have to be open-minded and see things from different angles.” From his career thus far, Mr. Shahari concludes that “Practicality comes from experience. You can’t be rigid and textbook – because risk management has to do with managing relationships.”