The Failure of Risk Management?

It makes a lot of sense to approach compliance from a risk management angle. After all, compliance is a risk area like another (e.g., the risk of getting fined for breach of competition laws). But are our risk management methods and tools reliable? Douglas Hubard, in his book "The Failure of Risk Management", explains that the methods commonly used in corporations to assess risks are fundamentally flawed. And when risks are not properly evaluated, then risk management itself becomes the biggest risk. He considers most "best practices" as ineffective management methods, passed from company to company like a bad virus and with serious ill effects (including such things as the risk matrix). He suggests how to fix it. This book is a page-turner. It has been for me a real eye-opener to see from an insightful perspective what is commonly considered to be the "right" way to do risk management. If you read this book, the universe of risk management will look very different to you.

Antoine Henry de Frahan