Cookies?
Library Header Image
LSE Research Online LSE Library Services

The risk management of nothing

Power, Michael (2009) The risk management of nothing. Accounting, Organizations and Society, 34 (6-7). pp. 849-855. ISSN 0361-3682

Full text not available from this repository.

Abstract

This essay challenges core elements of enterprise risk management (ERM) and suggests that an impoverished conception of ‘risk appetite’ is part of the ‘intellectual failure’ at the heart of the financial crisis. Regulators, senior management and boards must understand risk appetite more as the consequence of a dynamic organizational process involving values as much as metrics. In addition, ERM has operated as a boundary preserving model of risk management subject to the ‘logic of the audit trail’, rather than a boundary challenging practice which confronts and addresses the complex realities of interconnectedness. The security provided by ERM is at best limited to certain states of the world and at worst it is illusory – the risk management of nothing. In contrast, Business continuity management (BCM) may provide clues about how risk management might be reconstructed.

Item Type: Article
Official URL: http://www.elsevier.com/wps/find/journaldescriptio...
Additional Information: © 2009 Elsevier
Library of Congress subject classification: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HF Commerce > HF5601 Accounting
Journal of Economic Literature Classification System: G - Financial Economics > G3 - Corporate Finance and Governance
Sets: Departments > Accounting
Collections > Economists Online
Research centres and groups > Centre for Analysis of Risk and Regulation (CARR)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 16 Jun 2011 15:28
URL: http://eprints.lse.ac.uk/36828/

Actions (login required)

Record administration - authorised staff only Record administration - authorised staff only