Risk Management

Harvard Business School, (2009). Enterprise risk management. Retrieved February 27, 2010 from: http://www.hbs.edu/centennial/businesssummit/global-business/enterprise-risk-management.pdf

This article is a summary of a Harvard Business School Summit presentation, moderated by, Baker Foundation professor, Robert S. Kaplin, who gives his perspective on the importance of risk management in businesses and then hears from three risk management executives that have effective risk management programs in their respective companies. The summary lists several key points brought out in the summit, which include: there is great value in understanding risk management at the firm level; risk management is a key to sustained growth; staying relevant to your customers; strong management processes and controls; and others. This article discusses an important subject that managers should understand because in today’s corporate culture, risk management must be one of the top priorities for managers. Company leaders must set risk parameters and have the means of measuring the company’s risk and holding manager accountable for the results.