In a recent article by Jim Heskett in Harvard Business Journal’s Working Knowledge, he weighs in on value of performance bonuses; he says “they provide an incentive to do nothing”. Is $742,000 too much to pay one executive at AIG? These bonuses gained popularity during the merger frenzy of the 80s to encourage employees of [...]
Posts Tagged ‘control’
Retention bonuses: risk or reward?
Posted in My Opinions, Risk management, tagged control, ERM, inherent risk, residual risk, retention risk, risk register, Strategy on September 8, 2009 | 1 Comment »
Culture and risk management
Posted in ERM Basics, Office and culture, tagged control, risk culture on August 28, 2009 | 1 Comment »
A good 8-page paper on the culture or risk management in financial institutions from Booz & Co. It reminds me of my days on the institutional trading desk which I write about below. Booz writes: While the risk management function has grown in size over time, it is typically short on top talent. How many [...]
Risk Management is not Internal Audit
Posted in ERM Basics, Risk management, tagged audit, control, ERM, zombie on August 25, 2009 | Leave a Comment »
Risk management is looking forward Risk management is when you are driving your car on a foggy night and you cannot see more than 10 feet in front of you – there may be something out there: perhaps a deer, another vehicle or a zombie hitchhiking. But you don’t know when or if you will [...]
