Enterprise Risk Management: A Primer for Business Leaders – Part I (Evolution of the Corporate Risk Management Function – 1950 to 1976)
Until the 1990s, few business leaders thought of risk management as something broader than the procurement and administration of corporate insurance. In this article, we explore how the corporate risk management function came about and the insights of some of the early voices that anticipated the rise of the new field that today is known as Enterprise Risk Management (“ERM”).
Commercial insurance is sometimes fraught with tension arising from the competing interests of corporate policyholders and insurance companies. In part two of this two-part essay, Jim Leonard, our guest columnist and former insurance company executive, further describes the dynamics of the insurance business from his inside-out perspective.
Lori Siwik and Mark Siwik are the founders of SandRun Risk. They apply the principles of vertical leadership and lean six sigma to the discipline of risk management. From time to time they share their blog with guest authors who write about important risk management principles.