00 Article – ERM Core Concepts

Economic Crisis: Why ERM Did Not Fail

Updated, originally published 30 January 2009 I believe the message in this article, resurrected from my archive, is still valid. Risk management controls: not implemented, or subverted? We are continuing to experience economic turmoil (i.e., from the 2008-2009 financial crisis). After the first severe and generalized wave of economic upheaval originating in the US recession, …

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Making Sense of Risk Tolerance, Risk Appetite

Definitions of risk tolerance can border on the absurd, showing a slavish adoption of financial terminology where it makes no sense. The degree of risk tolerance, whether at the individual or organizational level, describes whether you are relatively:1) risk-averse (risk avoiding) in exchange for a degree of certainty regarding the reward in question; or2) risk-seeking, …

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The Risk Manager’s Changing Role

[980 words, edited, originally published 2013-26-07] As far back as 2012 RIMS (Risk & Insurance Management Society) reported on “The Evolving Role of the Risk Professional”. They recommended that risk managers view risk in a new way that “builds internal alliances, and enhances the strategic decision-making capability”; this in turn would require “specialized communication and …

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ERM books selected as university course texts

[originally published 2016-12-14] Solving the Enterprise Risk Management Puzzle: Secrets to Successful Implementation and companion volume Enterprise Risk Management Tools and Templates were selected as course texts for Laval University’s ERM course (ASR-4004 Gestion intégrée des risques en entreprise). These are not thick tomes costing hundreds. They are concise and practical. Tools and Templates is being offered …

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ERM Helps Solve Chronic Business Problems

[300 words, edited, originally published 2017-08-12] Enterprise risk management — correctly implemented — has an immediate practical benefit: to enable the solution of chronic business problems. That might sound surprising, as many conceive of ERM as a compliance exercise, with purported eventual benefits, such as reduced volatility and lowering the cost of capital. But value should …

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