CHIEF RISK AND
RISK QUOTE: Capitalism tries for a delicate balance: It attempts
to work things out so that everyone gets just enough stuff to keep
them from getting violent and trying to take other people’s stuff.
—GEORGE CARLIN, COMEDIAN
RISK QUOTE: Without passion you don’t have energy. Without
energy you have nothing.
—DONALD TRUMP, BUSINESSMAN
As already discussed, ERM proponents should pay attention to the fundamental difference between risks that are managed and those that are influenced. This difference encourages a central risk function to provide value to risk owners who want a broad understanding of risk and opportunity. At the same time, risk owners do not want to be annoyed or distracted by ERM, so real value should be delivered without busy work or intrusion. A high-tech platform for assessing the visual risk cluster can help. An issue that quickly becomes relevant is the two roles played by the head of the central risk function. Is the individual a chief risk officer, a chief strategy officer, or both? Let us explore the issue.