Global ERM Webinars - January 12 - 14 (CPD credits)ERM an Economic Sustainability PropositionWe are pleased to announce the fourth global webinars on risk management. The programs are a mix of…Continue
Riskviews has not received any gifts yet
The way that we calculate capital requirements is one of those embedded assumptions that has existed for so long that we fail to think about whether it really makes any sense or not. And if you do stop and take a step back, you will realize that it actually does not necessarily make much sense.
We calculate capital requirements looking backwards, when the thing that we will need capital for is in the future. That backwards capital requirement is only broadly close to being correct…Continue
You want a risk management program that conforms to a particular STANDARD. Standards usually present highly organized risk management systems. But that is not what is needed for many of the threats that our firms face. What We really need is a risk management program that fits our threats.
In an earlier blog post, the idea of managing both quantity and quality of risk was introduced.
But what exactly is Risk Quality?
At the most simple level, risk quality can be indicated as the rate of risk per unit of activity.
Risk Quantity = Business Activity Level x Risk Quality
So the suggestion is that a risk management system should pay close attention to that rate of risk as well as the Quantity of risk. See Riskviews Post on…Continue