More than Just Words
“We believe that effective risk management is critical to the success of our business and is the responsibility of all of our employees. All of our employees are risk managers. Employees are expected and encouraged to escalate incidents and any matters of concern to management and to our compliance and risk departments in order to effectively manage risk. Consequently, we have established — and continue to evolve and improve — a global enterprise wide risk management framework that is intended to manage all aspects of our risks.”
This is from a 10-k. Sounds like a great declaration of risk management. And this is about the clearest example of why much more than just words are needed for risk management.
These words are from the 2011 10-K of MF Global.