By Rick Nason, PhD, CFA
Partner, RSD Solutions Inc.
Partner, RSD Solutions Inc.
Data is a tool for
risk management, but data is not risk management. This simple fact is often lost in the current
environment of risk management. If the
risk management department is mainly a function for collecting data then
something is seriously wrong. Risk
management is the interpretation of data; the decisions of what data is
necessary; the decisions about what data to ignore; the management of things
that data cannot measure. Simply because
one has a hammer does not mean that a house gets built. Likewise, simply because one has a massive
collection of risk data does not mean that risk management is being practiced.
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