We generally do not tend to think of innovation and risk management as compatible themes.
Executive SummaryHaving an effective enterprise risk management protocol can help fuel and enable innovation. Here, actuarial consultant Aaron Halpert offers some ideas from current ERM thinking on how to best use risk management tools to bolster innovation.
Innovation conjures up images of bold new ideas, thinking outside the box, disrupting established ways of doing things and breaking new ground. Outdated applications of risk management, on the other hand, are focused almost entirely on reducing or transferring risk, primarily by imposing controls and keeping things inside the box.