Why Do Most Organizations Avoid Quantitative Risk Assessment?

No ERM process that is effective at helping a company understand threats and opportunities to achieving objectives is going to just create a list of risks. While that may be sufficient for a regulator, it means absolutely nothing for helping executives run the organization better. After identification, companies then take the vital step of assessing…
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5 Key Personas of an Effective ERM Professional

When my blog was still pretty new, I published in early 2017 an article on the qualities of an effective ERM professional. Three years may not seem like a long time, but it is when considering how fast things are changing. Although the original article contains information that is still relevant today, I felt it…
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Fewer Companies Realize Strategic Benefit from Risk Management Activities

Every spring, NC State’s ERM Initiative in partnership with the AICPA releases their State of Risk Oversight report. Data for the report was obtained through a survey sent to senior executives across a variety of industries this past fall. For this year’s report, 563 surveys were completed, which is a significant increase over prior years.…
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Why Reactive Decision-Making Can Be Devastating and How to Improve It

In response to the coronavirus pandemic, companies are having to make hard choices on how to survive and thrive through this uncertain time. Instead of taking time to consider potential impacts of their options, too many companies are taking a very reactive approach to their decision-making. The book Decision Quality: Value Creation from Better Business…
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7 Tips on Conducting a Successful Risk Appetite Workshop

A few months ago, I published an article outlining how risk professionals can develop engaging presentations and workshops. In the article, I discuss how ERM presentations are more than just a report, but instead a way to engage key stakeholders. Although a risk appetite workshop was used as an example in the previous article, a…
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Preparing for Regulatory Oversight of Advanced Modeling and AI

In today’s competitive and tumultuous environment, companies are beginning to rely on advanced modeling and artificial intelligence tools to drive decisions. With increased use of Monte Carlo simulation models and other tech-based tools, regulators are beginning to ask more questions about models and the data that goes into them. An article prepared by McKinsey &…
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Why Your Company Must Not Abandon ERM in These Trying Times

Wherever you are in the world, I hope this post finds you healthy and well in this difficult time. The COVID-19 pandemic is something most, if not all of us, have ever faced before. Before jumping into today’s post, a quick update on how my family and I are doing… Here in Florida, the number…
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Using Monte Carlo Simulation to Support Decision-Making

My first interview with Hans Læssøe last month covered a wide-range of topics, including background on what led Hans’ former company to adopt ERM and a few factors key to its success. In this interview, we discuss a topic I’ve touched on briefly in previous articles but haven’t elaborated on much, until now. Monte Carlo…
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Coronavirus Response Not Always About Minimizing Harm

Unless you have been living under a rock for the last couple of months, you have undoubtedly heard about COVID-19, a new type of coronavirus. In a daily report from the World Health Organization for March 9th, there are close to 110,000 reported cases worldwide. Sadly, the virus has claimed the lives of just over…
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