Major threats for risk managers vary extensively based on the type of industry. Harrah’s Entertainment may worry about natural disasters while Sun Microsystems tends to focus on reputation risks. Based on reports from businesses like Sun Microsystems, it is becoming much more manageable to maintain a company’s reputation with an enterprise risk management program in place. When disasters happen, a well thought out crisis plan can also mitigate losses.
The report, authored by Russ Banham, advises risk managers that they need to consider risks that go beyond what their usual computer models will demonstrate. Human risk factors should be considered since it is not uncommon to encounter disgruntled employees and a disregard for ethics in the workplace. There are always risk lurking, such as untrustworthy employees, that may not have been considered by a business in their past management plan.
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