JAMS, AND TOYOTA
RISK QUOTE: We may encounter many defeats but we must not be
—MAYA ANGELOU, POET
RISK QUOTE: Every really new idea looks crazy at first.
—ALFRED NORTH WHITEHEAD, ENGLISH
In spite of the failures or near-failures of Enron, Lehman Brothers, AIG, Citibank, and others, we recognize the need for ERM. The problem is its difficulty in gaining traction in the corporate world, partly because of its complexity and partly because often it has not been implemented effectively. Companies talk about ERM and flirt with it, but their implementation of it often makes it seem like they are going through the motions rather than really coordinating risk management.
We acknowledge that ERM has a modicum of complexity, but
This chapter is based on a presentation at the sixth annual Conference of the Federation
of Asian, Pacific, and African Risk Management Organizations in September 2006 in