THE EVOLVING ROLE OF THE CRO

KONSTANTINOS KONSTANTINOU, CHIEF RISK OFFICER AT ASBIS MIDDLE EAST, ON WHY RISK MANAGEMENT IS MORE IMPORTANT THAN EVER IN IT DISTRIBUTION.

Can you talk us through your career journey?

Having graduated from Middlesex University, I have tried my luck in the UK entering the accounting profession. However, I soon realised that I was not much interested in penetrating the profession of an accountant/auditor, I decided to move back home and look for more opportunities. At that time, six years ago, I was introduced to the ASBIS Group and joined as a Credit Control Assistant. During that period of significant changes in the group in 2017, there was an opening for a Senior Credit Risk Manager in our subsidiary in ASBIS Middle East in Dubai. I was offered the opportunity there. Ever since I have been evolving in this role and have been enjoying my role as the company’s risk manager. I sincerely believe that I have found what I was looking for, and I see myself in this role for a long time to come.

If there is something I have gained from my experience, I have a strong “ethical muscle” and continue developing and strengthening every day. This is so important as it teaches you how to evaluate risks and, if necessary, to say “no”. it is not about being adaptive to change, but being strong for the decisionmaking of the whole business. This is a really rewarding place to be!

Is the role of the CRO in IT distribution different today from what it was ten years ago?

The role of a CRO in IT distribution has changed significantly throughout the last ten years. The world financial crisis of 2008 has forced things to change drastically. In the past, being a CRO meant that you were sitting in an office, analysing your risks and making decisions based on these analyses. This has radically changed since unless someone understands their client from A to Z, they cannot make the best decision for both parties. Currently, there are multiple tools, and access to information is much easier, making the life of a CRO easier and more educated.

How does a CRO create value, specially when the current market is slow?

The creation of value has always been a major subject of discussion. Especially for us, who are not at the sales/marketing divisions of our organisation and we are dealing with the risk management and other aspects of the financial welfare of our organisation, it is tough to ascertain the value added. However, it is there where ASBIS has invested heavily and made the role of risk manager significant and forced all members of risk management to add value in the chain of our operations. The constant training, the commercialisation of risk services as well as the constant upgrade of the tools used allow a modern CRO to add significant value by enhancing the credit availability and therefore, increasing safe trading

What do you love most about your job?

Working in a multinational environment, getting to know so many different customers from so different ethnic, cultural, and financial environments, makes every day at work exciting. The challenge of each day is by itself a unique driver which is very rare to find. If there is a perfect job satisfaction level, I strongly believe that being a risk manager in ASBIS is very close to perfection.

How do you evaluate market risks and the best approach a distribution company can have for risk-free transactions?

There is no such thing called risk-free transactions, especially in IT distribution. The appropriate risk management is the name of the game. Each and every competitive organisation is trying the utmost to increase its revenue and profitability by engaging the less possible risk. In ASBIS, we know how to manage risk very well. We are one of the pioneering organisations utilising credit insurance since 2002. We have always been focused on all possible tools to assist us in making the best credit decisions. Managing risk in less developed countries entails very good market knowledge as well as working with strict rules and conditions, without pushing customers into undertaking huge cost burdens. This is why in ASBIS we know our customers very well, and we accommodate the risk-taking according to the profile of each customer.

Finance is an integral part of any organisation. How do you see the role impacting business decisions in a technology company?

As correctly stated, finance is the backbone of any organisation. It is like the oxygen which cannot be absent from any alive business. Its role, has been growing, especially after the credit crunch emanated from the world’s financial crisis. Especially at a time where cash has been a scarce resource and financial institutions were reluctant to grant credits, the role of financial management has been of immense importance. Allocation of cash and ensuring proper capital rationing has been significant and led to companies succeeding out of crises or leading them to bankruptcy. We are currently in an era where balance sheet lending is no longer attractive, but cash flow from operations is now ruling the game. All decisions made in a technology company like ASBIS, are based on the cash availability and the ability of the group to generate cash from operations.