The science of risk management continues to evolve. Lessons learned from past failures are being leveraged to ensure that a company’s risk management is built on the right foundation and evolving in the right direction.Without further ado, here are the questions:
- What is our risk taxonomy?
- How do we quantify risk?
- What is our risk appetite?
- What return are we generating for the risks we take?
- How do we separate responsibility for risk-taking from responsibility for risk management?
- How do we include risk when we compensate risk-takers?
- How do we ensure that our risk management is performing well?
More on this later...