CHAPTER 1MODERN RISK MANAGEMENT
RISK QUOTE: More than at any other time in history, mankind faces a crossroads. One path leads to despair and utter hopelessness. The other to total extinction. Let us pray that we have the wisdom to choose correctly.
—WOODY ALLEN, WRITER/ACTOR/DIRECTOR/PRODUCER
RISK QUOTE: Better to remain silent and be thought a fool than to speak out and remove all doubt.
—ABRAHAM LINCOLN, U.S. PRESIDENT
In 1988, companies and managers began to discuss enterprise risk. A decision in one area can have major impact, for better or worse, on overall results, a possibility long recognized by economists, analysts, and managers. Stated differently, an optimal risk mitigation decision for a business unit may be suboptimal for the entity ...