The Yin and Yang of Risk Management


a While ago I worked with a client where it soon became apparent that too much attention was given to financial indicators and not enough to intangible measurement. As I explained to the client there is was a need to "balance the yin and the yang" of the risk management approach in the company.

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This comment emphasizes both "hard" and "soft" sides of risk management. The hard (yin) includes committees, policies & procedures, quantitative assessments, reporting, limits, audits and systems.

The soft (yang) reflects awareness, people, skills, integrity, incentives, cultures, values, trust and communication. Both sides are essential to a sound program and a sound reputation.

Is your risk management system adequately balanced?

 

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