You have just been hired as the new risk manager of We Don't Change Manufacturing (WDCM). As the name suggests, they have been traditionally doing the same thing for the past 10 years. One of your first initiatives is to introduce the concept of enterprise risk management (ERM) to your boss, the treasurer. Identify three areas in which ERM and traditional risk management (TRM) differ. For example, one of the areas of TRM is that it” manages downsides risks” and one area of ERM is that it “manages both upside and downside risks”.
You have just been hired as the new risk manager of We Don't Change Manufacturing (WDCM). As the name suggests, they have been traditionally doing the same thing for the past 10 years. One of your first initiatives is to introduce the concept of enterprise risk management (ERM) to your boss, the treasurer. Identify three areas in which ERM and traditional risk management (TRM) differ. For example, one of the areas of TRM is that it” manages downsides risks” and one area of ERM is that it “manages both upside and downside risks”.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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You have just been hired as the new risk manager of We Don't Change Manufacturing (WDCM). As the name suggests, they have been traditionally doing the same thing for the past 10 years. One of your first initiatives is to introduce the concept of enterprise risk management (ERM) to your boss, the treasurer. Identify three areas in which ERM and traditional risk management (TRM) differ. For example, one of the areas of TRM is that it” manages downsides risks” and one area of ERM is that it “manages both upside and downside risks”.
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