Misunderstanding what is effective risk management

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Misunderstanding what is effective risk management

I want to commend Tim Leech for his persistence in pointing out how few organizations understand, let alone practice effective risk management.

In his latest post Tim reviews an EY publication, The Board Imperative: Is now the time to reframe. He comments:

New EY survey reports 84% of board directors don’t think companies they oversee have highly effective risk management….. EY has identified a big performance gap and a huge opportunity, but, in my view, not how to fix the problem/the way forward.

I agree.

But I have a somewhat different view from Tim (which may be more language than anything else).

Here are some good points made by EY:

  • A new survey of board members reveals that decisive action is required to optimize risk oversight and seize new strategic opportunities.
  • In the current uncertain environment, risk management has become essential to strengthen resilience and create sustainable value.
  • Boards have an opportunity to reframe their organization’s approach to risk management, but first they need to reconsider how the board itself thinks and acts.
  • Enhanced risk management has become a top priority for boards: 79% believe that improved risk management will be…

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