Rick Nason, PhD, CFA
Partner, RSD Solutions Inc
In a previous blog I have talked about how everything can become an issue for the risk department. That of course becomes an impossible task, and thus the task is on to simplify risk. Physicists have tried to do this – in fact there is a very interesting and readable book on it: Universe on a T-Shirt: The Quest for the Theory of Everything, by Dan Falk. http://www.amazon.com/Universe-T-Shirt-Quest-Theory-Everything/dp/B0046LUU4K/ref=sr_1_1?ie=UTF8&qid=1295797022&sr=8-1
Have you ever thought that we in the risk profession are guilty of the same thing? For example, COSO is an attempt to get a general framework that will work for all companies in all situations and for all things. No wonder implementation of the COSO cube has turned out to be a bust. We just had a request from an Asian company to design an ERM computer system that will essentially be timeless as the firm grows – again pure folly.
Risk management does not fit on a T-shirt. That is not to say that it is overly complicated or verbose. It is to say that risk management is context specific. Sometimes it is simply not appropriate to wear T-Shirts.
No comments:
Post a Comment