This interview discusses the 5 biggest weaknesses of enterprise risk management according to Dr. Vernon Grose: 1) ERM is not systematic and can create internal conflicts, 2) ERM is reactive rather than proactive, 3) ERM relies too heavily on outside expertise rather than internal knowledge, 4) ERM only considers probability and impact of risks rather than cost of countermeasures, and 5) ERM cannot properly rank risks by significance which leads to random allocation of limited resources. The document promotes Dr. Grose's expertise and solutions for improving risk management through his company and publications.
This interview discusses the 5 biggest weaknesses of enterprise risk management according to Dr. Vernon Grose: 1) ERM is not systematic and can create internal conflicts, 2) ERM is reactive rather than proactive, 3) ERM relies too heavily on outside expertise rather than internal knowledge, 4) ERM only considers probability and impact of risks rather than cost of countermeasures, and 5) ERM cannot properly rank risks by significance which leads to random allocation of limited resources. The document promotes Dr. Grose's expertise and solutions for improving risk management through his company and publications.
This interview discusses the 5 biggest weaknesses of enterprise risk management according to Dr. Vernon Grose: 1) ERM is not systematic and can create internal conflicts, 2) ERM is reactive rather than proactive, 3) ERM relies too heavily on outside expertise rather than internal knowledge, 4) ERM only considers probability and impact of risks rather than cost of countermeasures, and 5) ERM cannot properly rank risks by significance which leads to random allocation of limited resources. The document promotes Dr. Grose's expertise and solutions for improving risk management through his company and publications.
This interview discusses the 5 biggest weaknesses of enterprise risk management according to Dr. Vernon Grose: 1) ERM is not systematic and can create internal conflicts, 2) ERM is reactive rather than proactive, 3) ERM relies too heavily on outside expertise rather than internal knowledge, 4) ERM only considers probability and impact of risks rather than cost of countermeasures, and 5) ERM cannot properly rank risks by significance which leads to random allocation of limited resources. The document promotes Dr. Grose's expertise and solutions for improving risk management through his company and publications.
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Enterprise Risk Management:
Its 5 Biggest Weaknesses
An Interview with Dr. Vernon L. Grose
An interview with Dr. Vernon L. Grose. Chairman, Omega Systems Group Incorporated
• Author of MANAGING RISK: Systematic
Loss Prevention for Executives • President Reagan Appointee to NTSB • Advisor to Pentagon and NASA on R/M • Provided R/M for the Olympic Games • Hundreds of TV interviews on CNN, FOX, CBS, NBC, ABC, MSNBC and Canadian TV Five Biggest Weaknesses of ERM
1. Non-SYSTEMATIC, disjointed, producing internal conflict, and unable to address full range of risks. Five Biggest Weaknesses of ERM
2. REACTIONARY, not Proactive.
Waiting for the next big hit – even then often producing costly over-reaction. Five Biggest Weaknesses of ERM
3. Based on OUTSIDE EXPERTISE -
often of debatable value and focused only on “Hot Spots”. Ignores internal (free!) expertise about risk. Five Biggest Weaknesses of ERM
4. No COUNTERMEASURE COST – the “missing link” for top executives. Most R/M limited to ONLY probability and severity of loss. Five Biggest Weaknesses of ERM
5. Forces random use of very
limited resources – because risks cannot be RANKED for significance. Five Biggest Weaknesses of ERM
1. Not systematic, creates competition
2. Reactive rather than proactive 3. Trusting outsiders, not inside expertise 4. Only two-dimensional, instead of three 5. No ranking of risk for significance For more information
• Speak to an OSGI expert
• Order book, MANAGING RISK • Check out www.omegainc.com
