Enterprise Risk Management Quotes

Those involved in mental as opposed to physical effort or who carry the responsibilities of management are presumed to require a higher payment for their submission to the purposes of organization than those who render only physical or manual service, however adept or talented that may be. This is because there is profound difference in the nature and extent of the submission that is made. The person on the shop floor or its equivalent gives more or less diligent and deft physical effort for a specified number of hours a day. Beyond that nothing in principle--not thought, certainly not conformity of speech or behavior--is expected. Of the high corporate executive a more complete submission to the purposes of the organization is usually required. He (or she) must speak and also think well of the aims of the enterprise; he may never in public and not wisely in private raise doubt as to the depth and sincerity of his own commitment. Many factors determine his large, often very large, compensation, including the need to pay for the years of preparation, for the considerable intelligence that is requires, for the responsibility that is carried, and for the alleged risks of high position. As a practical matter, his rate of pay is also influenced by the significant and highly convenient role the executive plays in establishing it; much that accrues to the senior corporate executive is in response to his own inspired generosity. But there is also payment for the comprehensive submission of his individual personality to that of the corporation. It is no slight thing to give up one's self and self-expression to the collective personality of one's employer.

But we will never allow Berkshire to become some monolith that is overrun with committees, budget presentations and multiple layers of management. Instead, we plan to operate as a collection of separately-managed medium-sized and large businesses, most of whose decision-making occurs at the operating level. Charlie and I will limit ourselves to allocating capital, controlling enterprise risk, choosing managers and setting their compensation.

The most prominent characteristic of capitalism is the wage system, which in brief amounts to this: — A man, or a group of men, possessing the necessary capital, starts some industrial enterprise; he undertakes to supply the factory or workshops with raw material, to organize production, to pay the employés a fixed wage, and lastly, to pocket the surplus value or profits, under pretext of recouping himself for managing the concern, for running the risks it may involve, and for the fluctuations of price in the market value of the wares.

Peugeot belongs to a particular genre of legal fictions called ‘limited liability companies’. The idea behind such companies is among humanity’s most ingenious inventions. Homo sapiens lived for untold millennia without them. During most of recorded history property could be owned only by flesh-and-blood humans, the kind that stood on two legs and had big brains. If in thirteenth-century France Jean set up a wagon-manufacturing workshop, he himself was the business. If a wagon he’d made broke down a week after purchase, the disgruntled buyer would have sued Jean personally. If Jean had borrowed 1,000 gold coins to set up his workshop and the business failed, he would have had to repay the loan by selling his private property – his house, his cow, his land. He might even have had to sell his children into servitude. If he couldn’t cover the debt, he could be thrown in prison by the state or enslaved by his creditors. He was fully liable, without limit, for all obligations incurred by his workshop. If you had lived back then, you would probably have thought twice before you opened an enterprise of your own. And indeed this legal situation discouraged entrepreneurship. People were afraid to start new businesses and take economic risks. It hardly seemed worth taking the chance that their families could end up utterly destitute. This is why people began collectively to imagine the existence of limited liability companies. Such companies were legally independent of the people who set them up, or invested money in them, or managed them. Over the last few centuries such companies have become the main players in the economic arena, and we have grown so used to them that we forget they exist only in our imagination.

Oh, it’s perfectly safe to handle if somebody else has triggered the curse and you took it from their still-smoking body.” Eve paused. “Or if they sold it to you.” “You bought it, didn’t you?” Imp walked towards her. “Didn’t you?” “I think so. I may have screwed up that side of things,” Eve admitted. “It’s unclear.” “What’s unclear?” “It was up for auction: obvs, right? But it’s not clear that the person auctioning the location of the manuscript actually owned what they were selling, that’s the thing. Also, ancient death spells and intellectual property law don’t always play nice together. I, uh, my boss has a standard procedure he has me follow in cases of handling blackmail and extortion. We pay the ransom, then once we’ve destroyed the threat I repossess the payment from the blackmailer’s bank account. Via a Transnistrian mafiya underwriter—” This time it was Wendy who interrupted: “The Russian mafiya has underwriters?” “Transnistrian, please, and yes, criminal business models are inherently expensive because they have to pay for their own guard labor—there are no tax overheads, but no police protection for carrying out business, either—so of course they evolved parallel structures for risk management, mostly by embedding the risk in a concrete slab and dumping it in the harbor—anyway. At what stage does the book consider itself to have been legitimately acquired? And by whom? Is it safe for you to handle it, as my employee? What about as an independent freelance contractor not subject to the HMRC IR35 regulations? Am I an acceptable proxy for Bigge Enterprises, a Scottish Limited Liability Partnership domiciled in the Channel Islands, in the view of a particularly dim-witted nineteenth-century death spell attached to a codex bound in human skin by a mad inquisitor? It’s like digital rights management magic, only worse.

Merriam-Webster defines an entrepreneur18 as “one who organizes, manages, and assumes the risks of a business or enterprise.

In the second year of the Trump presidency, I attended a dinner of American hedge funders in Hong Kong. I was there as a guest speaker, to survey the usual assortment of global hot spots. A thematic question emerged from the group—was the “Pax Americana” over? There was a period of familiar cross-talk about whether Trump was a calamitous force unraveling the international order or merely an impolitic Republican politician advancing a conventional agenda. I kept interjecting that Trump was ushering in a new era—one of rising nationalist competition that could lead to war and unchecked climate change, to the implosion of American democracy and the accelerated rise of a China that would impose its own rules on the world. Finally, one of the men at the table interrupted with some frustration. He demanded a show of hands—how many around the table had voted for Trump, attracted by the promise of tax cuts and deregulation? After some hesitation, hand after hand went up, until I was looking at a majority of raised hands. The tally surprised me. Sure, I understood the allure of tax cuts and deregulation to a group like that. But these were also people who clearly understood the dangers that Trump posed to American democracy and international order. The experience suggested that even that ambiguous term “Pax Americana” was subordinate to the profit motive that informed seemingly every aspect of the American machinery. I’d come to know the term as a shorthand for America’s sprawling global influence, and how—on balance—the Pax Americana offered some stability amid political upheavals, some scaffolding around the private dramas of billions of individual lives. From the vantage point of these bankers, the Pax Americana protected their stake in international capital markets while allowing for enough risk—wars, coups, shifting energy markets, new technologies—so that they could place profitable bets on the direction of events. Trump was a bet. He’d make it easier for them to do their business and allow them to keep more of their winnings, but he was erratic and hired incompetent people—so much so that he might put the whole enterprise at risk. But it was a bet that enough Americans were willing to make, including those who knew better. From the perspective of financial markets, I had just finished eight years in middle management, as a security official doing his small part to keep the profit-generating ocean liner moving. The debates of seemingly enormous consequence—about the conduct of wars, the nature of national identity, and the fates of many millions of human beings—were incidental to the broader enterprise of wealth being created.

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The essence of business consulting Business consulting is becoming a well-liked hit everywhere in the world. Consultation providers are important to business folks since they help them in making informative choices. That is solely potential after serving to them understand the workforce within the enterprise world. Managers who analyze the functionality of their businesses are bound to make higher earnings than those that don’t consult an expert for surveillance. They should perceive the risks concerned, weaknesses and strengths in order for their businesses to survive competition. It is with enterprise consulting that companies are capable of analyze as well as improve upon their strategic operations. This turns into attainable because of the experience across assorted fields translating into a spectrum of new ideas. Any effective enterprise consulting will allow you to faucet into their varied sources, capabilities as well as services. Your online business will take pleasure in proven approaches, ideas and even methods. Because of this you would not have to reinvent the wheel again. You make use of confirmed strategies and construct upon them. In spite of everything, this can ultimately translate into increased productiveness in addition to more sales for your online business. As a Richmond Business Help way to grow to be more productive in addition to worthwhile, the companies of a enterprise consulting cannot be ignored. Simply just remember to are on the same page as them. It's highly vital for a business to be on the identical wavelength as their enterprise consulting team. The enterprise states its wishes whereas the enterprise consultants rework it into an achievable aim. The business states its desires and the enterprise consultants define whether or not it's practical and the simplest method to turn dreams into reality. Involving a professional guide will information you in making crucial choices. They usually present you with different scenarios that are more likely to happen in the market in the present day. Additionally they explain how your decisions are prone to impression on what you are promoting in the future. In addition they present strategies on find out how to diversify the product line rather than relying on a single product. They are going to guide you to ensure that there's utmost progress and competition is at per. Enterprise consultants enhance the information stage of a business. Their data is effective. They've been involved in varied tasks earlier than and understand all of the facets involved in the planning process. Additionally they have a clear understanding of the dangers concerned in each enterprise growth step. You possibly can due to this fact depend upon them for the event of your enterprise.

Visionary leadership is not reactive. It refuses to arrogantly offer the right solution or give the right answer. Rather, leading with vision requires that we relate to people. Dan Allender writes, Leadership is not about problems and decisions; it is a profoundly relational enterprise that seeks to motivate people toward a vision that will require significant change and risk on everyone’s part. Decisions are simply the doors that leaders, as well as followers, walk through to get to the land where redemption can be found.3 Leadership hinges on relationship, and that requires us to risk. And though I’m convinced that visionary, relational leadership is a bedrock Christian posture, we all have a disturbing bent toward relational immaturity. I see how easily I become cynical, dismissive, judgmental, and reactive. I see how quickly I’m tempted to blast back at the person who sends a critical e-mail, or judge the person who doesn’t make progress fast enough, or get impatient with those I manage who don’t accomplish exactly what I think they should. Our journey toward dealing compassionately with difficult people doesn’t simply require us to learn a bit more about others. It also requires us to become better acquainted with ourselves.

GE Beliefs.” A sample belief is the explicit recognition for the need to “Deliver results in an uncertain world,” further described by three key behavioral anchors: We act with urgency, and play to win. We have the courage to make bets others won’t. We use expertise and judgment to manage risk while always acting with integrity.8 Note

So, of the three major risk areas, execution risk remains the only real issue in building a company. How will the enterprise organize itself to maximize performance from its founders and management team? How will it leverage technology and information to create a unique and sustainable advantage and business model? Answering these questions correctly is the key to building a successful Exponential Organization. For this reason, we need to look more closely at each of the steps in building a powerful and effective team.

I wanted a position that required broad management in a growth enterprise that was doing something I could get excited about. I wanted to be an owner and to be committed to helping a team achieve its goals. Money would be great, but I was happy to be paid based on the value I was bringing to an enterprise, which presumably would be reflected in its success (or failure). The culture of the environment was important to me too. Basically, I wanted to build something. I knew that these factors applied only to those fortunate enough to have significant choices as to what sort of employment they take; most people take what they can get. That said, I figured I was still relatively young and could afford to take some risks and push myself in the direction I wanted to go. I could always declare penance later. By the time I arrived at Manhattan GMAT, I was charged up and ready to make a mark.

An entrepreneurial spirit makes you someone who organizes, manages, and assumes the risks of a business enterprise, talent or calling to become an agent of change.

we should consider the concept of the “black swan,” which has attracted a lot of attention since the crash of the US housing bubble in 2008. In his book, The Black Swan: The Impact of the Highly Improbable,1 Nassim Taleb defines a black swan as a hard-to-predict occurrence that nonetheless has an enormous impact on people’s lives.

There are two widely recognized frameworks for putting ERM into practice: the COSO (Committee of Sponsoring Organizations of the Treadway Commission) Enterprise Risk Management Integrated Framework and the ISO (International Organization for Standardization) Standard 31000: Risk Management Principle and Guidelines. There are some differences between these frameworks, and each has its share of proponents. Regardless of their differences, however, they both provide meaningful structure for ERM within the organization.

Enterprise Risk Management (ERM) involves viewing risk holistically and horizontally across an organization. Both insurable and non-insurable risks are identified across all facets and disciplines of an entity, with the objective to eliminate, ameliorate or transfer such risks—or prepare to accept them.

The SWOT component of strategic planning is the first point where strategy and risk management intersect. The product of the ERM process (the identified risks and mitigation plans) can inform the strategic planners—and vice versa. 

Investors still need to ask, how stable is the enterprise, and what are its future prospects? What are its earnings and cash flow? What is the downside risk of owning it? What is its liquidation value? How capable and honest is its management? What would you pay for the stock of this company if it were public? What factors might cause the owner of this business to sell control at a bargain price? Similarly, the pair never addressed how to analyze the purchase of an office building or apartment complex. Real estate bargains come about for the same reasons as securities bargains—an urgent need for cash, inability to perform proper analysis, a bearish macro view, or investor disfavor or neglect. In a bad real estate climate, tighter lending standards can cause even healthy properties to sell at distressed prices. Graham and Dodd’s principles—such as the stability of cash flow, sufficiency of return, and analysis of downside risk—allow us to identify real estate investments with a margin of safety in any market environment.

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finance remains an essential social institution, necessary for managing the risks that enable society to transform creative impulses into vital products and services, from improved surgical protocols to advanced manufacturing technologies to sophisticated scientific research enterprises to entire public welfare systems.

Limiting initial investment and creating resource scarcity is essential to managing the risk of innovation.

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