Keep It Simple: Getting Your Arms Around Enterprise Risk Management
Shivan S. Subramaniam
Early enterprise risk management tended to approach insurance as the one size- fits-all solution, rather than taking a holistic approach of prevention, control, and mitigation of risk. Many companies discovered insurance alone was not enough, and that specialized techniques are needed to properly manage each unique risk. Effective risk management combines all the requirements of corporate governance and focuses on events that could cause disruption to a company’s revenue drivers. Companies that understand and embrace effective risk management begin by developing an enterprise-wide mindset to managing risk championed from the top down by executive-level management.