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Replies

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  Jos Berkemeijer August 6, 2013 22:22

  Trying to become riskless..
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  James Buzzard August 6, 2013 22:18

  Sometimes a small loss is a good loss.  I had a friend that was a out-trade clerk for one of the clearing firms at the CME in the early 80's.

  He had an out-trade for one of his traders that he had to cover on the opening of the S&P 500 pit trade.  The loss on the opening would of been 500 dollars.  He felt that he could  trade out of the loss and possibly scratch the trade.  Unfortunately for him, the market took a nosedive after the opening.  He failed to cover the trade.  He sat on the trade hoping the market would let him out at a reasonable loss.  Never happened.  Before all was said and done, he turned a 500 dollar loss into a 40000 dollar debacle.  Hope and fear kept him from making a competent risk management decision.

  This amount may seem small but 500 or 500 million the decision making process is the same.
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  Jos Berkemeijer August 6, 2013 21:46

  1. Remain in office after an inadequate Board response given a serious risk warning
  2. Reformulate Risk management reports, documents, mails or end conclusions on basis of board remarks 
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  Kumbi Mabwe August 6, 2013 19:50

  ignoring 'people risk'
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  Michael Rogers August 6, 2013 19:15

  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
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  Lesego August 6, 2013 18:16

  Oversight 
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  stephen.heffron@aig.com August 6, 2013 17:49

  AIG
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  Barnabas Chirombo August 6, 2013 17:38

  Owning the management of risk, rather than the business process owners.
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  Costas Stabolas August 6, 2013 16:44

  The under-estimation of human stupidity!
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  Frank Harris August 6, 2013 16:39

  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!