By Sandeep Vishnu
In today's battered economy, few are willing to put in place anything that might meddle with earnings potential. Even fewer are willing to spend money on something that may offer only a theoretical return on investment. This is the preconceived attitude that greets risk managers when they knock on their company executives' doors.
Behind the polite, but forced smiles and handshakes, there is a silent accusation: risk management dampens revenue and puts brakes on innovation. But risk management isn't about playing it safe. It's about playing it smart. It is about minimizing, monitoring and controlling the likelihood and/or fallout of unfavorable events caused by unpredictable financial markets, legal liabilities, project failures, accidents, security snafus—even terrorist attacks and natural disasters. There's always risk in business, and risk management is designed to help companies navigate the terrain.
