RISK QUOTE: The secret of life is honesty and fair dealing. if you
can fake that, you’ve got it made.
—GROUCHO MARX, COMEDIAN AND MOVIE STAR
RISK QUOTE: I wake up every morning at nine and grab for the
morning paper. Then I look at the obituary page. If my name is
not on it, I get up.
—BENJAMIN FRANKLIN, SCIENTIST,
PUBLISHER, AND DIPLOMAT
Aorganizations evaluate the implementation of an ERM program, the discussion can quickly bog down. Should the entity form a central risk committee, hire a chief risk officer, or bring in outside consultants to set up a program? What should be the reporting structure? In this chapter, we look at research on the status of ERM implementation and conclude with a checklist of questions that can be completed prior to attempting to create an ERM process.
The board of directors is often a driving force for ERM and a central risk function. The board needs direct knowledge of how risks