Tag Archives | key risk indicators

Smooth-sailing Fallacy

In a McKinsey Quarterly article entitled “Management lessons from the financial crisis,” UCLA business professor Richard Rumelt coins the term smooth-sailing fallacy: This smooth-sailing fallacy arises when we mistake a measure for reality. Competent management always looks deeper than the numbers, deeper than the current measures. Incompetent management just focuses on the metrics, on the body…

Continue Reading 1

Enterprise Risk Oversight

A new report entitled the Current State of Enterprise Risk Oversight (alternately, here) has been published by several faculty members from the Enterprise Risk Management (ERM) Initiative at North Carolina State University.  For me, the conclusions are alarming, but perhaps not surprising: Despite the growing pressures for more effective risk oversight that are emerging from the…

Continue Reading 1