Too Much Risk or Not Enough?
Balancing the delicate relationship between the risk group and the strategy team is a challenge for the NeuGroup’s Corporate ERM Group.
ERM members recently gathered at Mastercard in Purchase, New York, to discuss risk strategy and mitigation. Here are some highlights from the meeting:
There’s a balance between taking too much risk and not taking enough. In addition to identifying emerging risks, members recognized various ways to measure risk. A common struggle is the tradeoff between asserting too much control over risk and driving up operational costs and taking too much risk for the corporation. One member described this process as taking calculated risk. Members also discussed managing personal risk tolerances and not letting those bias corporate risk policies.
The biggest cyber risk threats are not external forces but the internal forces in a company. Ronald Green, Chief Security Officer of Operations and Technology at Mastercard, shared his thoughts on internal security threats. Employees clicking on false links or responding to “fake” employees is an increasing problem, Mr. Green said. Theft of intellectual property is another problem that risk managers need to address.
Members left the meeting prepared to use alternate sources of data, improve ERM reporting and train the next generation of ERM practitioners.
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