Case Study: Keep It Simple
Frequently, companies will move down the path of risk management and like it. This, of course, isn’t a bad thing. Companies become proficient at risk management, find the right uses for it, and begin to embrace its many business advantages. They want to do more and more. This holds particularly true for companies that have the resources or skills to adopt some of the more technical aspects of risk management, especially measurement.
Companies are often tentative when they adopt their first risk measures. Then they see how the measures provide insight and real value, offering improvements in pricing, customer management, and other functions. They begin to adopt risk measures aggressively.
The decision to ramp up risk ...