Risky Business

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2 Responses

  1. Ken Rhodes says:

    I hate to sound cynical, but sadly, that’s what I am on this subject.

    In a 35 year career in IT, I saw the development and sanctification of more buzzwords than I can possibly remember, with layer upon layer of bureaucracy added to the IT organizational structure, in the hope of getting the beast under control. Yet still, the best software is created by the best programmers working hard and ignoring distractions, irrespective of how many bureaucrats invoke how many “enterprise standards.”

    The simple cure for the absurd risk behavior of our too-big-to-fail institutions is not found in “enterprise” buzzwords. Rather, it is to (a) stop laundering the risks the way organized crime launders illicit profits, and (b) put some folks in charge who are more risk-averse.

    Simple? Did I really say that? Oh, well, wishful thinking.

  2. Michelle Harner says:

    Ken:

    I actually love your response; thanks for taking the time. I also am not a fan of buzzwords, and they can be counterproductive. I am, however, cautiously optimistic about the potential benefits of ERM because it is not based solely on risk modeling but actually considers the human component of risk management. What we need (as you suggest) are thoughtful and responsible individuals managing risk, with some accountability if they do not. Now, whether or not firms implement and effectively use ERM is an entirely different issue.

    Best regards, Michelle.