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    Avoiding the pitfalls of enterprise risk management 2010. viewed on September 16, 2011, from henrystewart.metapress.com/index/G25MK68111286883.pdf

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    Avoiding the Pitfalls of Enterprise Risk Management:

    The global financial crisis is known to have several causes despite the fact the Economist Intelligence Unit report highlighted the issue of governance as the main cause of the cause. Governance was termed as the primary contributing factor because the financial crisis risk was not managed. At one point, technical shortcoming was also mention as a factor which contributed to economic crises.

    During the times when the risks concentrations were still on the increase, the senior executives did not show any concerns to the financial risk issue they only paid more attention on outperforming revenue and the profit targets despite the fact that there has been proof presented that such an approach does not provide any benefit to any institution. The financial crises however taught people a hard learned lesson and in the year 2009, a survey was conducted whereby it was evident that most of the financial institutions had already adopted the wholesale reform as a way of managing risk which actually brought positive results since there was a noticeable change in the rate of the financial risks in those financial institutions.

    Within financial services organizations, there has been an increased attention on the governance of the financial risk since reappraisals of the institutions corporate governance, data, risk functions and information systems have been established. Moreover, the financial institutions have also have also resulted in some changed business processes as well as procedures which facilitates the act of managing risks which are associated to financial crises. In addition, more awareness has also been created regarding the financial risk which is termed as the first line of defense against the risk protection.

    There are also weaknesses which still remain despite the progress which has been experienced while managing the financial risk in response to the global financial crises. Weaknesses such as complacency risk are in existence despite the fact that the confidence levels still remain to be high. Other than the risks some ...

    Solution Summary

    The expert examines avoiding the pitfalls of enterprise risk management.