The Fabrics of ERM

Last month ERM experts Alice Underwood and Dave Ingram suggested that enterprise risk management can be broken into four distinct approaches. I’d like to lay out their ideas, then give some of my reactions: They called these four approaches  fabrics: Diversification – where you reduce risk by buying a bunch of additional stuff or doing [...]

The problem with risk

A couple of weeks ago I participated in a long email chain of ERM enthusiasts discussing the definition of risk. The chain started: The issue was whether risk should be defined, as it is in ISO 3100, as: “Effect of uncertainty on outcomes” – which means that risk is two-sided including both favorable and unfavorable [...]