The past few years have been filled with some of the US' most massive business failures, both in and out of the financial service sectors. One of the most frequently cited causes of the crisis is a failure in risk management. Rough Notes has tackled this problem several times over the past year or so, but enterprise risk management (ERM) continues to receive significant negative attention and is frequently cast as the "fall guy." While a number of studies and white papers have addressed this situation, the Risk and Insurance Management Society (RIMS) recently published a white paper that provides some interesting perspectives regarding the 2008 financial meltdown. But according to RIMS, merely implementing a risk management process across an enterprise is not enough; it must support front-line risk ownership, as well as governance oversight. ERM is not a panacea for all the uncertainties facing a company.
LESSONS FROM THE FINANCIAL MELTDOWN Michael J Moody Rough Notes; Mar 2009; 152, 3; Docstoc pg. 70 Reproduced with permission of the copyright owner
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