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The Risk Management Gap
Author(s) -
Leitch Matthew
Publication year - 2017
Publication title -
board leadership
Language(s) - English
Resource type - Journals
eISSN - 1542-7862
pISSN - 1061-4249
DOI - 10.1002/bl.30088
Subject(s) - risk appetite , risk management , perspective (graphical) , principal (computer security) , management , enterprise risk management , set (abstract data type) , public relations , business , political science , computer science , economics , computer security , artificial intelligence , programming language
Risk is one of the most important topics addressed in the boardroom. It is also one of the trickiest. In this article, Matthew Leitch, a member of the Centre for Risk Research and a coauthor of the Southampton Business School's guide, “Directing Risk Management in Organizations,” starts from the perspective that the received wisdom that the board can somehow be directly involved in every decision involving risk in their organization, because they have considered the principal risks, and set a risk appetite is a fantasy. The reality he explores here is that most of the thinking that takes place in an organization does not involve the board and requires a quantity of thinking that is orders of magnitude more than the board itself can deal with.