EIU report : Managing Risk in Perilous Times : Practical Steps to Accelerate Recovery

This report from EIU, published in March 2009, sponsored by ACE, KPMG, SAP and Towers Perrin provides a guide in what it takes in an organization to enable and empower risk managers to perform their roles.

The summary of ten practical lessons that could help in addressing the perceived weaknesses of risk management are :

1. Risk management must be given greater authority
2. Senior executives must lead risk management from the top
3. Institutions need to review the level orisk expertise in their organization, particularly at the highest levels
4. Institution should pay more attention to the data that populates risk models, and must combine this output with human judgment
5. Stress testing and scenario planning can arm executives with an appropriate response to events
6. Incentive systems mustbe constructed so that they reward long-term stability, not short-term profit
7. Risk factors should be consolidated across all the institution's operations
8. Institutions should ensure that they do not rely too heavily on data from external providers.
9. A careful balance must be struck between the centralization and decentralization of risk
10. Risk management systems should be adaptive rather than static

There you go. I seriously think that in the context of this organization that the priority ishould be no 1,2 3, 7 and 9.

I recommend reading this report in detail. Click at the link here.