Establish a risk challenge culture: all organizations must thoroughly examine their current operating environment and question how and how well they are prepared to face any kind of potential threat or disaster

No company is immune from risk and uncertainty, and new approaches are needed to navigate risky environments. Creating a risk challenge culture should be a top priority. While ERM is certainly part of the solution and has been shown to create value, reduce volatility, minimize surprises, and lead to better decision making, even a perfect ERM process can't succeed without a risk challenge culture that supports it. Unfortunately, examples of a poor risk culture are abundant. Two of the most severe and expensive-both in dollars and human suffering-examples occurred in different parts of the planet, in entirely different industries, and in vastly different circumstances. Yet both had roots in the seemingly innocuous confines of organizational culture. By our describing these incidents in some detail here, you'll have a better idea of the true value of changing corporate culture to ensure that problems-no matter how inconsequential or highly unlikely they may seem at the time--are identified early and steps are taken to stop them from going further.

To avail of this paper, please contact the Society on info@actuaries.ie.  Further information on the paper is available here

Source
Strategic Finance
Author
Paul L. Walker, William G. Shenkir, Thomas L. Barton
Date Published
Publication Type
article
Resource Type
academic

ResourceID: 142303

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