The End of Enterprise Risk Management

Enterprise risk management (ERM) has grown in significance since the mid-1990s to become a key resource in the conceptualization and design of risk management systems. We argue that this emphasis is misplaced and contributes to the problem of a divide between analysis and action. ERM may be relevant for regulators and others in need of proof of good governance, but its formulations have become progressively detached from the reality of modern financial organizations. We argue that buy-side risk management practices provide an alternative conception of risk management which is more grounded in operations and which avoids the problems of actionability created by controls-based ERM.

Source
Research Gate
Length of Resource
11 pages
Author
David Martin and Michael Power
Date Published
Publication Type
paper
Resource Type
academic

ResourceID: 142229

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