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Enterprise-wide risk management: myth or reality?(Selected Topic)

Business Credit

| March 01, 2004 | Kalita, Mitali | COPYRIGHT 2004 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Managing risk is an old habit of human beings. In our day-today life, we seem to always be worried about future risks. As a result, we end up investing in insurance or other investment instruments to secure ourselves against those unseen risks. Accidents, environmental disasters, bankruptcy, loss in business and death are risks that have plagued us since time immemorial. Generally, we cannot get a complete shield against may potential risk, but we can adopt appropriate proactive measures to mitigate every risk. The same concept applies to the financial services industry too. However, managing risk individually seems to be less talked about today, while enterprise-wide risk ...

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