Risk Watch with Alberta QUARCOOPOME: Empowering leaders without titles

… a must in risk management

Dear readers, when it comes to leadership, every member of the organization is part. Before I left branch banking about twenty-five years ago, I used to give informal titles to the branch staff. Tellers were known as Cash managers, sales personnel were Sales Managers, Customer Service were Frontline Managers, Security staff were Security managers, and so on. Do you know how they felt when I “jokingly” added the Manager title to their roles? Obviously, they had a sense of belonging and empowerment. Afterall, I don’t know everything in branch banking. What I had was a birds eye view of the various functions and good knowledge to ensure compliance and service excellence. Although I had written books on Tellers and Front Desk Executives, I had never acted as one. Respect and empowerment are critical to make the staff have a sense of belonging to  give off their best in their various corners.

The Informal Leaders

Have you ever wondered how some individuals are able to lead and make a significant impact without holding a formal leadership title? That’s how different human beings are. That’s why in the church, some members are identified by the priests to assist them in various ways, even though they have not been ordained.  In life, we come across natural or born leaders in our path. In this article, I will be discussing brief differences between managers and leaders, and narrow it down later to empowering identified leaders in the organization to manage risk.

The Risk Factor

I have always highlighted my belief that out of the various risk factors and sources of losses, the most critical for me is People Risk! Yes. Sometimes we forget that all the procedures, policies, technology etc are managed by people. Various Bank of Ghana reports on bank frauds lists internal fraud as one contributing factor. In Operational Risk, there are four main factors that cause losses to banks: PEOPLE, PROCESS, SYSTEMS AND EXTERNAL EVENTS. My most critical is people Risk because banking is executed by people. Even in this dynamic world of digital banking, People Risk come before systems. A robot takes orders from its master, so if that master is unethical, it will end up with heartless robots and systems without integrity.

Who is a Risk Manager?

A risk manager is a professional responsible for identifying, assessing, and mitigating potential threats to an organization’s operations, finances, and reputation.

A risk manager oversees an organization’s risk management strategies to ensure preparedness for potential challenges.

All the above responsibilities require that one must be in a manager’s role to be a risk manager. Their importance stems from the role played by them. They are essential for protecting an organization’s assets, revenues, and reputation. By proactively managing risks, they help organizations remain resilient, make informed decisions, and maintain long-term sustainability. They act as strategic advisors, connecting operational teams with executive leadership to ensure a culture of awareness and preparedness.

Who is a leader anyway?

Leadership is often described by what a leader does or the capabilities they have. Yet while the skills and behaviours of individual leaders are important, the true meaning of leadership is about what people do together. Said another way, everyone in an organization contributes to leadership. When people think of leadership or leaders, they often think of one person in a positional role of responsibility.

On the other hand, leadership is also described as  a social process that enables individuals to work together to achieve results that they could never achieve working alone, regardless of position.

• This definition of leadership avoids putting the entire weight of leadership on a few individuals — or limiting the leadership potential of others. Each person can discover and build upon their own leadership potential.

• This view of leadership is both realistic and adaptive — because the truth is, leadership doesn’t take place in isolation. It reflects, responds to, and shapes many different relationships, cultures, and systems.

• It’s also practical. When we define leadership as something that happens through the interactions among people with shared work, we have many opportunities to amplify leadership potential. Plus, in a group, a multitude of skills, perspectives, and expertise work together, making the whole greater than the sum of its parts. Any individual weaknesses are overshadowed by the strengths of others, and the team or group thrives — accomplishing more together than any one individual could ever do alone.

Leaders Vrs Managers

The terms management and leadership are often used interchangeably, but there are distinct differences, so understanding the definition of leadership vs. management can be helpful. The key difference between them:

• Management is the process of planning and control, while

• Leadership is the process of people working to achieve something together.

Both management and leadership are important for accomplishing goals or making change happen, and depending on your role, you will need to draw on aspects of both to be effective.

Leaders Without Titles

Dear managers, let us identify some of your staff who shows signs of leadership, even though they do not have official titles. Leadership without a title involves influencing and guiding others without formal authority. Here are some key competencies:

• Emotional Intelligence: They understand and manage their emotions and those of others to build strong relationships.

• Informal Leadership: They inspire and guide others by earning trust and demonstrating competence, regardless of their position.

• Adaptability: They adapt to all colleagues and have everyone’s support when they handle issues.

• Building Trust: They establish clarity and consistency in their actions to lead effectively before being officially recognized

• Inspiration: They motivate others to achieve common goals, showing that leadership can come from any level within an organization.

In a typical branch banking scenario, most staff report directly to the Operations Manager, while Sales, Credit officers report to the Branch Manager. Informally there are some unique staff members who become peer leaders by supporting the branch management in various ways. Such persons are respected by the staff and convey a lot of confidence and experience in handling staff members. When they speak, the staff listen. Sometimes, even more than when the branch managers talk.

Tips on effective utilization of Peer leaders in Risk Management:

Be close to identified people managers due to some benefits:

• They are closer to most staff and can share apprehensions about some staff who show red flags that may confirm your own suspicions

• Staff living above their means

• Staff with uncomfortable closeness to some customers

• Staff who close late and still work in the banking system for long periods

• Staff who don’t wat to go on leave or transfer

• Staff who show opulence outside the bank through their social media interactions

• Staff who seems to be familiar with others’ password, or hover around people who are keying in their passwords

Do not be afraid of such natural leaders; influence on staff because they can even help with practicalizing some strategies from management.

Recommend them for additional training so they can also go up the ladder of influence and promotions.

Note To Leaders Without Titles

• Leadership is not solely determined by title or position. True leadership goes beyond hierarchical structures and resides within each individual. It is a mindset and a way of being that transcends formal designations.

• As you Lead without a title you need to embrace qualities such as a positive voice, candor and truth, a focus on the mission and the team, active feedback seeking, and the pursuit of one’s full potential.

• When you lead without a title, you tap into the power of influence and impact through your actions and character, rather than relying on a formal position. By embodying the essential qualities of leadership, you can inspire and motivate others to achieve shared goals, even without official authority. Your positive voice can uplift and encourage those around you, creating a supportive and collaborative environment.

• Being candid and truthful helps foster trust and transparency, building strong relationships with your team. By focusing on the mission and the team, you shift the emphasis from personal recognition to collective success, promoting a sense of shared purpose and ownership.

• Actively seeking feedback demonstrates humility and a commitment to continuous improvement, while striving to fulfill your full potential inspires others to do the same.

Leading without a title not only empowers you to make a difference in your immediate sphere of influence but also has a ripple effect. As you lead by example and inspire others, the culture of leadership without title spreads, creating a more inclusive and empowered organization.

Remember, Leading without a title means discovering the leader within yourself and using your influence to make a positive impact on those around you. Keep your risk management awareness high and leave a good example for others. There is honour in leading without a title.

Stay glued to the cause. Dont give up.

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