Skip to Content
  2. Mailing Lists
  3. in
  4. A leader’s guide to risk management in turbulent times

Archives

AI: Sparking a new era of innovation

Enquiry: Looking for Logistics Service in Mexico!

A leader’s guide to risk management in turbulent times

Leading Off

Risky business ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 
Leading Off

Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms

Welcome to the latest edition of Leading Off. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com.

—Alex and Axel

While many organizations have dedicated chief risk officers (CROs), all leaders must be prepared to navigate potential threats to their business. This is especially true now as geopolitical uncertainties—including a looming August 1 deadline for new tariffs—and a host of technological and societal shifts are putting increased pressure on organizations to operate with more agility and resilience. Other executives can take lessons from how CROs approach risk issues and help their companies thrive in a disruption-filled business environment. This week, we look at the most common habits of highly successful CROs, which can be instructive for leaders of all types.
An image linking to the web page “The six habits of highly successful chief risk officers” on McKinsey.com.

What are the best practices for managing risks? McKinsey’s Ida Kristensen, Marc Chiapolino, María del Mar Martínez, and Ritesh Jain interviewed 30 current and former CROs of financial firms worldwide and identified six essential habits of the most effective risk leaders. These behaviors include fostering the next generation of leaders for risk and the overall organization; collaborating with other C-suite leaders and board members to achieve risk and business objectives; and establishing a North Star for their risk functions while championing a risk-aware culture. Leaders can cultivate a strong risk culture by prioritizing clear communication, transparency, and timeliness in addressing difficult issues, and by embedding risk into the organization’s broader vision. The CRO role itself has “moved from traditional risk management to one in which a resilient culture fuels and, in many ways, leads growth. But this change doesn’t happen without a team built to meet today’s unprecedented changes,” the authors say.

3.2
An image linking to the web page “Building geopolitical resilience: A conversation with Michèle Flournoy” on McKinsey.com.

The relentless volume of news about potential business risks can feel overwhelming, but leaders must continually pressure-test their vulnerabilities as new information and issues arise. Michèle Flournoy—the cofounder and managing partner of WestExec Advisors, which helps CEOs and investors navigate geopolitical risks and opportunities—says that successful companies run scenario-based tabletop exercises to help their leaders determine their readiness to manage problems. “You want to put that process on repeat, so that it’s iterative and you’re buying down risk and coming up with contingency plans so that when the crisis actually happens, you’re not the deer in the headlights,” she tells McKinsey Senior Partner Andy West in an episode of the Inside the Strategy Room podcast. Flournoy advises leaders that they now need to devote more time to risk management than they may be used to. “As chaotic as today’s challenges may seem, you have to make room for the future to have a seat at the table,” she says.
An image linking to the web page “Which chief risk officer archetype are you?” on McKinsey.com.

Just as the business of personal matchmaking continues to grow, it’s increasingly important for organizations and leaders to find their ideal match—especially when it comes to risk. McKinsey’s Cristina Catania, Ida Kristensen, Marc Chiapolino, and Tijana Trkulja have identified three common CRO archetypes, which can illuminate whether risk leaders are well suited to meet their companies’ needs. These archetypes are the “architect,” who aims to strengthen the risk function for the next generation; the “protector,” who seeks to create a highly responsive risk organization that can handle any challenge; and the “business accelerator,” who focuses on generating business growth and profitability while fending off risks. “Examining these archetypes can help CROs better understand their innate inclinations—and help them identify conditions under which they could benefit from altering their archetype to deal with shifting circumstances,” the authors say.

Lead by strengthening your risk management muscle.

— Edited by Eric Quiñones, senior editor, New Jersey

Share these insights

Did you enjoy this newsletter? Forward it to colleagues and friends so they can subscribe too. Was this issue forwarded to you? Sign up for it and sample our 40+ other free email subscriptions here.

This email contains information about McKinsey’s research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy.

You received this email because you subscribed to the Leading Off newsletter.

Manage subscriptions | Unsubscribe

Copyright © 2025 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007
by "McKinsey Leading Off" <publishing@email.mckinsey.com> - 04:32 - 21 Jul 2025