WE HAVE NOW covered an ERM system and the technology to support it. That is not the whole story. Organizations face exposures that are all too often overlooked in discussions on risk. We have repeatedly made the point that when people think of risk, they think of loss. ERM recognizes the upside of risk and the importance of accepting danger in order to pursue opportunity.
Risk management will fail if we do not consider things that are close to us, endanger us, and are hard to see. Are we managing strategic risk? Do we understand the weaknesses in our strategies? Do we consider how subcultures can destroy our goals? What kind of leadership do we need? What kind do we have? What life cycle stages are represented by different lines of business or operating units? What problems arise from life cycle risks? Finally, what are we doing to increase our understanding of what is happening on the distant horizon?