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When risk increases, the natural response is to take action to reduce that risk. But not every increase requires action. In fact, it may distract you from more important issues.

I’m talking about the risk of treating every risk the same.

Astute observers of risk have a variety of tools to monitor risk, from near real-time indicators to audits, exams, and reviews. But it’s not enough to recognize that risk has increased. Its ultimate impact must be considered.

For example, a review might show that e

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