ERM is a new and developing field.
However, it is wrong headed to ever expect that it will fall into a simple set of repeatable practices.
That is because of the nature of RISK.
Risk has a way of changing and adapting to your risk management strategies. Risk is like water looking for the weak seam to flow through and produce a leak. Water is not being an evil conscious entity, that is just the nature of water. And that is the nature of risk as well. It will adapt and change and will find the cracks in your risk management system.
But there is a solution for risk managers. They must manage their system so that it is flexible and adaptable. To do that they must be on a constant learning path. Learning about how risk has adapted, learning about how others have adapted their risk management systems and learning about how others failed to successfully adapt while also learning from their own successes and failures.
This is the exact same sort of process that a firm must undertake if it is to be successful with marketing in the long run. But in many cases, management expects that some sort of limited FIXED defense will work for risk management. The sort of defensive thinking that produced the famous Maginot Line. And we all know how well that worked.
Risk learning sometimes needs a mantra to make sure that it keeps happening. Riskviews suggests the risk learning mantra:
Inside, Outside, Backwards, Forwards
Inside means looking to learn from your own successes and failures.
Outside means looking at others experiences.
Backwards means looking at past experiences.
Forwards means looking into the future for what might be needed.
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