The Upside of Risk
Enterprise risk management (ERM) has always had an upside component because risk itself has an upside. By exploring the upside of risk, practitioners can add measurable value to their organizations' bottom lines.
By John Bugalla and Dan Kugler
Risk Management
March 2009
Enterprise risk management (ERM) has been around for years, but its traction has been mainly in the financial services, energy and utilities sectors. Now, with a push from the major credit rating agencies coupled with risk management making headlines since last year's financial meltdown, more U.S. companies will no doubt be practicing ERM. But what kind of ERM will they be practicing?
ERM has always had an upside component because risk itself has an upside. Several ERM practitioners have discovered that by exploring the upside of risk and including the concept of build, expand and exploit in their approaches, they can add measurable value to their organizations' bottom lines.
In this article, authors John Bugalla and Dan Kugler argue that ERM goes beyond preserving assets, protecting people and complying with regulations.
