Thursday, March 25, 2004

Risk

Trevor is right. The time has come to rethink "risk." Technologies to deal with risk have changed dramatically and our definitions and orientations have remained frozen in the times of Marchant calculators. Risk is at the heart of many things related to corporate governance, especially internal control. I begin with risk defined in terms of events. We can now get our arms around events in full dynamic reality and fidelity. We don't need to hide our ignorance of dynamics behind the fog of probability and severity any more.