JOHN R.S. FRASER
Senior Vice President, Internal Audit, and former Chief Risk Officer, Hydro One Networks Inc.
BETTY J. SIMKINS
Williams Companies Chair of Business and Professor of Finance, Oklahoma State University
President and Owner of ERM Strategies, LLC
Businesses, business schools, regulators, and the public are now scrambling to catch up with the emerging field of enterprise risk management.
—Robert Kaplan (quote from Foreword in Fraser and Simkins, 2010)
Most executives with MBA degrees were not taught ERM. In fact, there are only a few universities that teach ERM. So some business school graduates are strong in finance, marketing, and management theory, but they are limited in terms of critical thinking, business acumen, and risk analysis skills.
Over the past two decades enterprise risk management (ERM) has evolved from concepts and visions of how risks should be addressed to a methodology that is becoming entrenched in modern management and is now increasingly expected by those in oversight roles (e.g., governing bodies and regulators). As Felix Kloman describes in his chapter “A Brief History of Risk Management,” published in Fraser and Simkins (2010), many of the concepts go back a very long time and many of the so-called newly discovered techniques can be referenced to the earlier writings and practices ...