The Rise of Enterprise Risk Management and Governance

by Robert N. Charette

In mid-2000, I wrote the Cutter Consortium article "The New Risk Management," which discussed the then-changing world of risk management practice [7]. At that time, I wrote that it was difficult to imagine how the use of a unified approach to managing risk involving business strategy, finance, human resources (HR), treasury management, manufacturing, and operations would not be an organizational requirement in the future. I further noted that the management of risk was vital to the capture of business opportunities created by IT and that, in effect, whoever manages risk generally -- and IT-related risk particularly -- wins the most. I concluded that business pressures would likely make the discipline of risk management a core organizational competency by the end of this decade.