What is the most catastrophic error made by a Risk Manager at a bank or any other company?

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Thinking that they have addressed all the risks that they have identified.

My first reaction was to put the risk managers at Baring Brothers up for this award for the Nick Leeson debacle.

  1. Not facing clients, other stakeholders or competitors.
  2. Mixing up Risk & Control
  3. Accepting any kind of Bonus 

Telling the Programme Director that he and his senior management team were the single biggest risk.

Pretty catastrophic for my tenure on that programme :-)

From my personal experience the most catastrophic error a Risk Manager can make is to ignore the warning signs and not take appropriate action just because it would upset business status quo and would cast the RM as a non-team player and a political outcast.

he most catastrophic error made by a Risk Manager
he most catastrophic error made by a Risk Manager
he most catastrophic error made by a Risk Manager
Uncovering a major risk that was not earlier identified during the planning stages then failing to immediately formally report it to the stakeholders is most catastrophic. It's takes a lot of guts to tell leadership you found a big time risk that places the company or project in jeopardy when you didn't see it coming at the initial stages as it could cost you your job, but if you try to hide it and fail to get it quickly under control you run the risk of serious liability to the company and many others could lose their jobs. As risk manager or PM it's your responsibility so own it and seek help immediately when you uncover major risk. Don't play hero and try to mitigate a major risk on you own!

The under-estimation of human stupidity!

Owning the management of risk, rather than the business process owners.

AIG

Oversight 

Cowing under to management pressure to ignore warning signs or omitting Risks

Allowing comprises to Risks already identified to make leadership look good or dodge a bullet

ignoring 'people risk'

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