Regulatory shifts and company board concerns have spurred a renewed interest in risk management. This was further accentuated by the credit crisis, which required firms to focus on managing risk. But that’s easier said than done. A Mint-Corporate Executive Board initiative on exploring management trends.
Myth 1: The biggest risk my company faces is financial risk
Myth 2: My company is safe because we review risks and prioritize mitigation efforts annually
Myth 3: We are good at risk-sensing because we have invested in enterprise risk management (ERM) systems
Myth 4: Our risk assessment is comprehensive because we account for likelihood and impact
Myth 5: We are well protected because we have a strong quantitative model to measure risk
Myth 6: We can sense and protect business better because we manage risks at the business unit (BU) level
Also Read Previous articles from the Six Myths Series
Also See Reality, Facts and Action Steps (Graphics)
Illustration by Shyamlal Banerjee and Graphics by Ahmed Raza Khan/Mint