Research & Thoughts

Enterprise Friction

The mandate for risk management

In today’s economy, it is difficult to fund initiatives that may offer a theoretical return on investment. This is a challenge often faced by risk managers as they try to put in place structures to guard against losses. However, enterprise risk management is not about playing it safe. It is about playing it smart by minimizing, monitoring and controlling the likelihood and/or fallout of unfavorable events caused by unpredictable financial markets, legal liabilities, project failures and accidents. In this Capco report, entitled “Enterprise Friction: The Mandate for Risk Management,” we explore the role of risk management in operating a successful business in today’s economy. We believe that the key to any successful enterprise risk management strategy is to treat as the application of well-balanced friction that helps organizations avoid unnecessary losses while responding effectively to the threats and vulnerabilities to which organizations are exposed.

At Capco, we believe that companies should rethink risk management, viewing it not as a necessary evil but as a strategic function in their organizations. This report provides an overview of the challenges and tools risk managers can use to win over executives who claim that risk management might dampen earnings potential or stall innovation. Learn how senior executives can integrate risk management into their business processes, while building a culture of risk awareness and action.