Master Risk Management – Turn Uncertainty Into Momentum

Ziwani’s new podcast series RISK tackles the practical realities of taking bold steps in business – reframing the conversation around taking gospel-inspired risks while being grounded in professional responsibility. In this episode host Kerryne Krause, seasoned entrepreneur and founder of Cryoslices, interviews Solomon Abiakalam, Group Director of Compliance, Financial Crime, and Conduct at Equity Bank. 

You can listen to the full episode here. 

Seeing uncertainty as a gift

With 25 years of financial management experience across West and East Africa, Solomon provides insights on how effective risk management acts not as a constraint, but as an important enabler of growth. 

He defines risk as “the measure of uncertainty in any venture that we are embarking on,” adding that uncertainty is not only inevitable, it is also a gift. “Uncertainty is what makes life worth living. If we knew when we were going to die, when our loved ones were going to get ill, when our cars were going to break down – I don’t think anybody wants to live that kind of life, right? That would be a boring life, it would be a depressing life. There are certain things that we are protected from by the mere fact that we don’t know.”  

Understanding different types of risk 

Moving into the business context, Solomon explains that “each business has its own risks based on the environment in which it operates. It is important that you understand what these are. You cannot manage risk down to zero, but you want to lower your inherent risk to a point where you are happy to live with the residual risk.” 

By way of example, he outlines five key risks applicable to the financial services sector: 

1. Compliance risk, which refers to “the risk that as a business you may fall foul of regulatory expectations, with its related consequences.” 
2. Financial crime risk, “the risk that money launderers, terrorism financiers, or fraudsters may use your services for their own ends.” 
3. Conduct risk, “the risk that your employees may behave badly towards your customers, or in a way that creates problems for your customers.” 
4. Operational risk, “the risk that your systems, your people, or your processes may fail, thereby affecting your ability to offer your products or services.” 
5. Market risk, which covers factors such as inflation, exchange rates, or changes in cross-border trade agreements that could suddenly create a loss on product imports or exports. 

Managing risk successfully 

Solomon then breaks effective risk management down into five steps: 

1. Identify the risk, clearly and accurately. 
2. Assess the risk both in terms of probability and impact. How likely is this to happen? And if it happens, would its effect be minimal, or devastating? 
3. Mitigate the risk by putting plans in place to reduce either the likelihood or the impact of the risk happening (or both). For example, if the likelihood is high, you could decide to “outsource the impact of the risk by taking out insurance.” 
4. Monitor the risk to be sure that the mitigations you have put in place are working as designed and adjust your strategy if necessary. 
5. Report on the risk. “This is really important. The person who manages the risk cannot also be the governing authority on the overall risk mitigation strategy, because you cannot hold yourself accountable. The CEO needs to know, the board needs to know what is happening.” 

He also points out that “risk is mostly proportionate to the size of the business” – so a startup and a major bank wouldn’t face the same exposures, but both need to manage their risk carefully and commit resources accordingly. “Risks can wipe us out completely. If we ignore them, they can collapse the business, they can completely destroy dreams,” he cautions. 

Approaching risk in different ways

Another principle Solomon stresses is that risk and reward go together. “If there’s no reward, there’s no point in taking the risk. Before you put in the capital – what could you lose, what could you gain? You must understand that clearly.” And risk appetite isn’t static either. “Even as an individual, your risk appetite will change through the stages of your life. The risks that you can take when you are 40 are not the same as the risks you can take at 20.” 

He uses a vivid illustration to show how taking risk is highly context specific. “If I’m riding a motorbike by myself, the way I turn will be different to when I’m riding with my wife. On my own, I can do a Formula One turn, but with the two of us, I’ll have to adjust my angle. And when you add children, the way I turn will adjust even more. The more people you add to the motorbike, the more it will change the way I ride.” 

For Solomon, risk management is both practical and spiritual. “As believers, God expects us to take risks, and God expects us to manage risks. We must be people of understanding – we must have maturity in our approach to risk. We have to put the controls in place, and we must remember that ultimately, all outcomes are in the hand of God. So no matter what happens, we have an assurance that our risk has already been managed, because God is always with us.” 

Seeing risk as an enabler, not a constraint

Solomon counters the stereotype of risk managers as ‘the people who always say no,’ offering another illustration to get his point across. “Your business is like driving an SUV. Risk management is your braking system. Take me out, you’re going to crash! Every time you push on me, I’m going to function properly – so that you can drive around at 240km per hour, if that’s what you want. You can have the biggest engine, but if there’s a problem with your braking system, you simply can’t drive as fast.”  

That’s why he really enjoys managing risk. “As a Compliance Manager, when I discuss risk with you, I’m actually looking at the objectives of the business. I’m looking at what this company succeeding can mean for our continent. I don’t take a prohibitive approach. I’m actually trying to help you succeed as a businessperson, pushing your own success.” 

So whether you’re building a new venture or managing complexity at scale, Solomon’s gospel-shaped approach to risk offers both a sobering reminder and an empowering invitation – with the right brakes in place, you can move forward faster.