accepting risk

Risk Appetite and Risk Tolerance – Which Definitions Do You Use?

In follow up to our recent article on handling risks that exceed the company’s appetite, we would like to share this perspective from our friend Hans Læssøe on this complex and controversial topic. Hans’ article below describes how the world’s leading risk management standards, COSO and ISO 31000, have differing definitions on risk appetite and…
Read More

Finding the Right Talent for Understanding Uncertainty

I don’t particularly like discussing the coronavirus pandemic; it seems like the topic is pretty worn out, but for organizations of all types and sizes, the pandemic and governments’ response to it over the last year blew the lid of uncertainty wide open. Now it’s not that 2020 ushered in the age of uncertainty –…
Read More
technology risk

Is Technology Risk Bigger Than “Cyber” Risk?

It’s not an earth-shattering thing to say that news of hacks, data breaches, and other technology hiccups has grown exponentially in recent years. Between January and September 2019, 7.9 billion records were exposed, marking a 33% increase from the same period in 2018. A few of last year’s data breaches include: An error in pharmacy…
Read More
ERM & audit

Understanding the Changing Dynamics between ERM & Audit

As is often repeated here and elsewhere, the world is changing at an incredibly fast pace. Even without this year’s coronavirus pandemic, this pace will only accelerate in the years and decades ahead as automation, AI, machine learning, and other technologies continue to develop. ERM and audit are not immune to this change… Internal auditors…
Read More

What to Do When Risks are Unavoidable

As is often repeated on this blog and elsewhere, the focus of risk management should not be minimizing harm to the organization but achieving objectives and maximizing success. No company can (…or should) try to avoid all risks. Taking this route can be disastrous, especially in today’s world. When developing strategy, hopefully your organization is…
Read More

Real-Life Example of Robust Enterprise Risk Management

Today we have a special guest – Hans Læssøe. As you may know, Hans’ perspective is something I reference often here on the blog. We finally got a chance to catch up! In this interview, Hans and I discuss his background, what led his former company, LEGO, to adopt ERM, and a few factors key…
Read More

Protecting Trade Secrets: Finding the Right Balance

Out of all potential sources of a company’s value, tangible or intangible, trade secrets are often the most valuable.  While the theft of trade secrets is nothing new, it is an ongoing and growing problem that leads to over $300 billion in annual losses according to the Commission on the Theft of American Intellectual Property.…
Read More

ERM at Thanksgiving – An Illustration of Risk Management in Action

It’s Thanksgiving week in the U.S. – the air is crisp, Fall colors abound, and there is a palpable excitement as we enter the year-end holiday season. This week’s holiday provides a great opportunity to reconnect with family and old friends and take stock of what we’re grateful for. On occasion, I like to take…
Read More
Menu