CHAPTER 3
CONTRIBUTIONS OF ERM
RISK QUOTE: Not only do I not know what’s going on, I wouldn’t know what to do about it if I did.
—GEORGE CARLIN, COMEDIAN
RISK QUOTE: Cheers to a new year and another chance for us to get it right.
—OPRAH WINFREY, BUSINESSWOMAN AND TV PERSONALITY
Now we move into new territory, identifying the seven contributions of ERM. More than that, we develop a paradigm for enterprise risk management. We get close to the operational level where risk comes alive and managers deal with it on a day-to-day basis.
Contribution 1: Recognize the Upside of Risk
As already explained, the first contribution of ERM occurs when “risk opportunity” is incorporated into the definition of “risk.” This acknowledges the interaction among ...
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