Posted on October 14, 2009 by

Aligning Risk Appetite and Exposure – Insight from LEGO Group

Having read you white paper on “aligning risk appetite and exposure”, I see a lot of value in this – possibly because a lot of it is rather closely linked to what we are currently implementing. A few more detailed comments:

It is stated in the introduction, that the financial crisis was caused by a lack of processes, technology etc. Alas, I am getting increasingly ascertained that it was a mere matter of “neglect”. As long as everything looked well – no-one listed to the boy who “cried wolf”, and it is commonly known, that the biggest risk of any organization is the incident, where someone makes management aware of the second biggest risk, and gets ignored (multiple whistleblowers faced that, some got laid off on that exact note).

To me/us, risk appetite comes in multiple parts…

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