The Art of Risk Management
Summary
The article argues that risk management must be embedded in a company’s strategy and culture, not treated as a standalone function. It presents ten guiding principles for an integrated ERM approach, including top-level ownership, cross-functional integration, avoidance of black boxes, risk-aware culture, and the use of leading indicators and scenario planning to anticipate unknown risks. Through real-world examples (GE, Chevron, Hydro One, Infosys), it demonstrates practical ways to implement these principles and emphasizes iterative, adaptive risk management over static compliance.