Enterprise Risk Management is a Critical Need

In a recent speech to the International Conference of Banking Supervisors, Eugene Ludwig presented a compelling account of the lessons we should take away from the financial crisis.  Mr. Ludwig formerly served as U.S. Comptroller of the Currency and in his speech, he provides a clear perspective of the events that contributed to the crisis we now face.  In particular, he promotes the need for stronger risk management across markets and across corporate enterprises.  Here is an excerpt from his remarks.

"As the recent environment has shown, significant risks can be embedded in complex instruments and spread across a variety of regulated and unregulated institutions. And the same risks can be spread across one institution in toxic quantity because the risk is parceled out into different corporate pockets without the regulator or company being able to aggregate the risks appropriately. Therefore, regulators globally must work collaboratively to collect, share, and assess risks, to identify concentrations and to take action, and regulators and managements need be able to assess risks across the entire enterprise."

As Mr. Ludwig states, the ability to assess risks across the entire enterprise is critical to preventing unknown excessive risk-taking.  Wheelhouse Advisors is equipped to help companies build and strengthen their enterprise risk management programs.  Visit our website at www.WheelhouseAdvisors.com to learn more.