As I read the newspapers, listen to news radio, watch TV news, stream business and general news, one of the words that shows up most frequently is “risk.” Risky decisions, risk-weighted analyses, risk-focused audit, cyber risk, climate change risk, to name a few examples. Several business people have told me they just want to run their enterprises and, unless risk taking is explicitly part of the business model (as for an investment fund or insurance firm), they just don’t have time to worry about risk. This preference, while understandable, appears to be at odds with the frequent media references, so I decided to consult some experts. The 2018 International Standard on Risk Management ( ISO 31000 ) says that t he purpose of risk management is “the creation and protection of value. It improves performance, encourages innovation and supports the achievement of objectives.” Another widely recognized industry initiative ( COSO 201...
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