Recommitting to ERM

Gregory DL Morris recently wrote an article in Risk & Insurance Online exploring the connection between BP’s April 2010 oil spill and enterprise risk management (ERM). The article suggests that the oil spill resulted from a lack of enterprise risk management and concludes that companies should use the spill as motivation to increase their own risk management to avoid a similar crisis. Below is a small excerpt from Morris’ article, featuring a quote from The ERM Coach, Larry Baker:

“Even as ERM comes under scrutiny, one practitioner said it is important to remember what ERM is and is not. ‘ERM is not designed or intended to protect us fully from problems,’ said Larry L. Baker, managing partner of enterprise risk at CFR in Tulsa, a large independent broker in Oklahoma. ‘ERM is designed to protect the current value of a company, and to enhance its value in the future.’

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