Risk management is ultimately about creating a culture that would facilitate risk discussion when performing business activities or making any strategic, investment or project decision. In this free book, Alex Sidorenko and Elena Demidenko talk about practical steps risk managers can take to integrate risk management into decision making and core business processes. Based on our research and the… Continue reading FREE BOOK: Guide to effective risk management (150000+ downloads)
Risk management is broken: why savvy professionals move beyond ERM
What if everything your organization calls “risk management” is actually making you poorer and more vulnerable? While companies worldwide pour billions into risk registers, ERM frameworks, and risk committees, they’re missing the most profound opportunity in modern business: transforming risk management from a cost center into a profit engine that could slash expenses and generate… Continue reading Risk management is broken: why savvy professionals move beyond ERM
The $221 billion scam: why your company is both overcharged and underinsured
Large corporations face a paradoxical crisis: 90% of buildings are underinsured while simultaneously overpaying for coverage, according to Kroll’s 2021 appraisal study. This represents a $221 billion annual global property protection gap (Swiss Re) occurring alongside systematic overpayment driven by pricing inefficiencies, with leading insurers achieving 47% loss ratios versus 73% for laggards—a 26-percentage point… Continue reading The $221 billion scam: why your company is both overcharged and underinsured
Why I don’t trust ChatGPT with risk management
Two years ago, I realized something that made me uncomfortable: every time I tested a public AI tool on risk management questions, it gave me terrible advice. Not just unhelpful. Actively bad. I’d ask ChatGPT about risk matrices, and it would enthusiastically explain their benefits. Claude would walk me through implementing enterprise risk management frameworks.… Continue reading Why I don’t trust ChatGPT with risk management
RISK AWARENESS WEEK 2025 – Largest virtual risk and insurance conference of the year
For years, I sat through risk management conferences that made me want to leave the profession. The pattern was always the same. Sponsors paid for booths. Sponsors got speaking slots. And suddenly the agenda was full of presentations about software features or broker nonsense that had nothing to do with making better decisions or risk management.… Continue reading RISK AWARENESS WEEK 2025 – Largest virtual risk and insurance conference of the year
The guy who created risk management says we screwed up
Grant Purdy helped write the book on risk management – literally. He co-authored ISO 31000, the global standard everyone follows. After 50 years in the field, he’s saying something uncomfortable: we got it wrong. Here’s what he means. Walk into most companies and you’ll find risk registers nobody reads, heat maps that annoy everyone, and… Continue reading The guy who created risk management says we screwed up
Are you happy risk management in your company creates value?
Most risk management destroys value. Risk matrices lie to you. ERM frameworks waste time and annoy management. Quarterly risk reports accomplish nothing except satisfying auditors. Your risk register sits in a drawer while critical decisions get made without considering uncertainty. Your insurance department is relying on broker recommendations instead of your risk analysis. Meanwhile, you’re… Continue reading Are you happy risk management in your company creates value?
Which LLM is Better for Risk Management? ChatGPT, Claude, Gemini or Copilot?
None of them. And here’s why that should terrify every risk professional. When you ask ChatGPT about risk matrices, it enthusiastically explains their “benefits.” Claude confidently describes how to implement enterprise risk management frameworks. Gemini cheerfully walks you through creating risk appetite statements. Copilot helpfully suggests using heat maps for risk visualization. They’re all spectacularly… Continue reading Which LLM is Better for Risk Management? ChatGPT, Claude, Gemini or Copilot?
Critique of draft COSO Corporate Governance Framework: Principle 21
Risk management should help us make better decisions, not create more paperwork. Yet Principle 21 of COSO’s draft framework, while containing some good ideas, pushes companies toward the same old mistakes that have plagued risk management for years. Let me be clear: linking risk to strategy is smart. Looking at both threats and opportunities makes… Continue reading Critique of draft COSO Corporate Governance Framework: Principle 21
Stop avoiding the risk quantification elephant in the room
In a profession dedicated to identifying and managing uncertainty, there exists a puzzling contradiction: many managers actively avoid quantifying the very risks they’re tasked with. You probably know risk managers like that, we all do. While quantitative risk analysis forms the foundation of effective decision-making under uncertainty (see any textbook on decision science), it remains… Continue reading Stop avoiding the risk quantification elephant in the room
How risk management turned into a meaningless ritual
In 1946, mathematicians at Los Alamos developed Monte Carlo simulation to model nuclear reactions under uncertainty. By the 1990s, sophisticated mathematical approaches to risk helped win Nobel Prizes and generate billions in financial markets. In 1998, Long-Term Capital Management (LTCM) showed us the limitations of risk models. Today? Many organizations have reduced risk management to… Continue reading How risk management turned into a meaningless ritual
