ABSTRACT
The challenge of Enterprise Risk Management (ERM) is that risk is generally uncertain, almost always in the future and often in dispute: it is easy to defer consideration. Addressing this challenge means that risk management needs to have the right motivation, perspective, goals and support. Modern risk management understands which factors are critical to success, and which could trigger disaster. Not surprisingly the most useful elements of risk management are the most difficult, and the process will always be a black art. Best risk management ensures sufficient controls are in place to eliminate serious error. This more sophisticated approach to risks, pro-actively managing, instead of ignoring, them, is like other forms of insurance and has a cost by imposing controls on existing operations and constraints on new ventures. However, control systems are only as good as the integrity, ethics, skills and authority of people, and the reliability of other resources involved.
