Risk Management Trends and Developments Paper

Risk Management Trends and Developments Paper - Risk...

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Risk Management Trends and Developments Paper Risk Management Trends and Developments Paper CORPORATE RISK MANAGEMENT FIN/415 October 6th, 2008 Introduction 1
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Risk Management Trends and Developments Paper Today’s business environment is ever-changing. In order to become or remain successful in this environment a firm’s management must ensure that the firm stays current when it comes to changes in the market both innovative and also detrimental. This is no different for the risk management function of management than it is for any other function management performs. If a firm does not stay current with the trends and developments when it comes to risk management the firm may be hit with unnecessary losses or miss out on opportunities for gain. Enterprise Risk Management Enterprise risk management is a growing trend in the risk management arena. When viewing risk management it is a strong concept to view the process as encompassing the entire firm or enterprise. The implications of this for a firm can be wide reaching. When a firm’s management views risk management through this process it can be highly beneficial as it looks at the risks involved across the entire business rather than piece by piece. This is important as it may identify risks that otherwise might be overlooked. However, this process can have some inherent flaws. According to Barrese, J., these can include the difficulty of measuring the results of criteria that are not easily quantifiable, business processes at this level of management not being properly aligned with risk management, a lack of acceptance by managers that do not see the value in the process and finally the reluctance of managers to reveal weaknesses in their business processes. Even with these inherent flaws the trend towards enterprise risk management
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Risk Management Trends and Developments Paper - Risk...

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