ERM - Enterprise Risk Management: Issues and Cases

4 Monitor Results and Revise

Things change; organizations change; the environment changes; leadership changes; the economy changes. Risks themselves change. As a result the organization must periodically evaluate the efficacy of the risk treatment techniques it is utilizing with critical risks. Are they still working or must they be revised? Secondly, new risks can become important and risks that were previously considered to be non-critical may be critical. Critical risks on the priority list may rise and fall in importance and impact over time. Assurance, audit, review of data, and periodic reassessment of the risks to strategy are steps that cannot be overlooked. The strategy itself must be reconsidered when necessary.

4.1 BUSINESS ETHICS AND RISK MANAGEMENT

Marc Ronez

Chief Risk Strategist and Master Coach, Asia Risk Management Institute

“It's only when the tide goes out that you learn who's been swimming naked.” (Warren Buffett, Berkshire Hathaway)

A string of economic crises (the Asian financial crisis, dot-com bubble and the subprime collapse) as well as major corporate collapses (Enron, WorldCom and many others) have put the issue of business ethics under the spotlight and made it top item on the “To Do” list of boards of directors all around the world. The reason for this increased scrutiny is simple: At the root cause of most corporate collapses and economic crises, you will find an ethical issue that had not been properly addressed.

For example, many corporate scandals ...