Why Risk Management is Everyone’s Job

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Expert Advice from Dan Draz on Why Risk Management is a Task Everyone Shares

Risk management was once the job of a single person or small team. But as The Conference Board Review explains in their Winter 2014 issue, it’s now a job for everyone.

Risk management used to be someone else’s job. And that someone else was often head of security—the guy who worried about fire drills and industrial espionage, who posted warnings about business trips to dubious countries, who ran credit checks on executive candidates. In many companies, the “risk manager” was really the person who bought various kinds of insurance, to make sure that if anything went wrong, somebody else paid up.

But as the business world has become less stable and more complex, risk has meant more and more, especially since the financial crisis of 2008, largely caused by outsized risks that too few people took seriously enough. The discipline itself has evolved, along with the list of those responsible for being watchdogs. And now you’re on that list, along with almost every other manager in your organization.

Read the entire article on The Conference Board’s We Are All Chief Risk Officers Now.