The Organizational Drag of Risk Management Must be Diminished

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Regulators and organizational leaders were largely , but reacted strongly after it occurred. This has led to a situation in which risk management’s operational drag in most large firms has now become too big and has to be reduced. A 2014 shows data taken from its members that only 6% of time spent by audit departments on risk types is spent on . While this category is responsible for 86% of the significant losses in market value over the last 10 years. And on the other hand, no less than 52% of time is spent on financial, legal and compliance issues, while such issues only account for 5% of all significant market value losses. The conclusion is that nowadays risk departments are looking for risks in all the wrong places. In reaction to market turmoil, companies have been increasing their and risk management budgets. But an excessive or even exclusive focus on risk prevention and formalized risk management processes has created an unintended consequence referred to as “Organizational (...) Read more? Sign up for free

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		Steven Cooke
	Risk Management Misdirection Yes, of course companies should focus on value cre (...)

		Love Lonnroth, Management Consultant, Sweden
	Risk Management Should Be Lean or Agile Thank you Jaap for bringing up an important issue. (...)

		Stephanie Dolan, Entrepreneur, United States
	The Customers' Trust of your Business Personally, I believe if we tabled just for a mome (...)

		Keatsen LIU, Professor, China
	Risk Management not Only an Organizational Drag Thanks for this hot topic. Risk Management is not (...)

		jorge anibal hoyos hoyos, Manager, Colombia
	Everybody Must Execute Risk Management At every level, component, procedure into the comp (...)

		Dr Robin C Hesler, Canada
	The Organizational Burden of Risk Management The subject refers to "strategic" which means to m (...)

		Juan Manuel Ugarte, Professor, Mexico
	Avoid Over-regulation of Risk Management Thanks to the Editor for the discussion of this to (...)

		ELIZABETH DELGADILLO UBALDO, Professor, Mexico
	Risk Management Not Only About ISO 31000 It is very important today in all companies that t (...)

		jorge anibal hoyos hoyos, Manager, Colombia
	Everybody Must Be Educated on Risk Management I think all people must be taught how to identify (...)

		Barney Wade Howard, Manager, United States
	Risk Management is Needed But Not Need not be Complicated Today more than ever this topic is a hot one. Howe (...)

		Juan Manuel Ugarte, Professor, Mexico
	Proportionality of Risk Management As I wrote @, criteria such as proportionality are (...)

		Briolett, Manager, Canada
	Risk Management & Business Ethics If businesses acted with integrity there wouldn't (...)

		Kasper Hiddema, Student (University), Netherlands
	Best Practices for Dealing with Risk in Organizations Indeed in the wake of a crisis, both regulators an (...)

		Jaap de Jonge, Editor, Netherlands
	History of Risk Management in Business Banks Until the 1980s, business and investment ba (...)

		John Maddalena, CEO, South Africa
	Involve Risk Champions in Strategy Meetings for Risk Implications Agree with the views in the topic. While I apprec (...)