Computers and Math, the secret to ERM

Enterprise Risk Management is a growing science and all to important for business owners. What use to be experience and observation, is now practiced with computer models and analytics. The day is here where risk can be evalutated with mathematical precision which allow business owners and boards to use risk to acheive goals. This is a big switch from earlier mindsets of risk avoidance and risk control. The development of ERM practices has created the need to more sophisticated risk analytics, which in turn has discovered how to use risk to accomplish the goals and objectives of businesses. Take for example strategic risk. Lets say that a business wants to go into a new product line. With the use of risk analytics, the business can be shown the statistical risk factors of success or failure. The business can make capital expenditures on these models. Though nothing is out there to guarantee success, these mathematical risk models can surely enhance the opportunity to succeed. ERM is here to stay and will develop into a staple if business with the help of computer analytics, Until next time be careful out there and know your risks. K

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