According to Mark Beasley, KPMG Term Professor of Accounting and director of Poole College’s Enterprise Risk Management Initiative, the traditional business approach to risk management is too siloed and too internally focused, with leaders of each unit managing risks for just that unit.
The problem with that approach? “Risks will emerge that don’t care about your org chart,” Beasley said. When a risk to your business cuts across your siloes, the traditional approach lacks an effective way to manage it because the risk doesn’t fall within a silo.
So when Beasley wanted to present a more innovative approach to risk management at the ERM Initiative’s recent ERM Roundtable Summit, he enlisted the help of JMark Scearce, professor of art and design in the College of Design. Scearce, a professional composer and a former chair of NC State’s Department of Music, teaches design thinking to his students, and he applied that perspective to risk management in his summit presentation.
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