Co-Creating Strategic Risk-Return Management

CFOs are on the front line in navigating the turbulent waters oftoday’s business environment.The global economic crisis of2008 and continuing challenges in 2009 have revealed serious limitations and dangers ofmany ofthe traditional ways ofmanaging risk.In recent years,there seems to have been too much unbridled focus on “returns”(return on investment) and not enough attention paid to the “risk”underlying that ROI.

Some critics argue that because returns on certain strategic initiatives were so great,risks that were present were either unknown or ignored.(For example,see the Jan.4,2009,article in The New York Timestitled “Risk Mis-Management”that was highly critical ofthe shortcomings ofthe risk over- sight processes at many ofthe failed financial services institutions.)