Before and after modelling: risk knowledge management is required

Eduardo Rodriguez, John S. Edwards

Research output: Contribution to conferencePaper

Abstract

Risk and knowledge are two concepts and components of business management which have so far been studied almost independently. This is especially true where risk management is conceived mainly in financial terms, as, for example, in the banking sector. The banking sector has sophisticated methodologies for managing risk, such as mathematical risk modeling. However. the methodologies for analyzing risk do not explicitly include knowledge management for risk knowledge creation and risk knowledge transfer.
Banks are affected by internal and external changes with the consequent accommodation to new business models new regulations and the competition of big players around the world. Thus, banks have different levels of risk appetite and policies in risk management. This paper takes into consideration that business models are changing and that management is looking across the organization to identify the influence of strategic planning, information systems theory, risk management and knowledge management. These disciplines can handle the risks affecting banking that arise from different areas, but only if they work together. This creates a need to view them in an integrated way.
This article sees enterprise risk management as a specific application of knowledge in order to control deviation from strategic objectives, shareholders' values and stakeholders' relationships. Before and after a modeling process it necessary to find insights into how the application of knowledge management processes can improve the understanding of risk and the implementation of enterprise risk management. The article presents a propose methodology to contribute to providing a guide for developing risk modeling knowledge and a reduction of knowledge silos, in order to improve the quality and quantity of solutions related to risk inquiries across the organization.
Original languageEnglish
Number of pages23
Publication statusPublished - 2008
Event6th Annual Premier Global Event on ERM 2008 ERManagement Symposium - Chicago, United States
Duration: 14 Apr 200816 Apr 2008
http://www.ermsymposium.org/2008/index.php

Symposium

Symposium6th Annual Premier Global Event on ERM 2008 ERManagement Symposium
CountryUnited States
CityChicago
Period14/04/0816/04/08
Internet address

Bibliographical note

© 2008 The Authors

Keywords

  • mathematical risk modeling
  • enterprise risk management
  • knowledge management
  • mathematical modeling
  • risk modeling
  • risk modeling knowledge

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    Rodriguez, E., & Edwards, J. S. (2008). Before and after modelling: risk knowledge management is required. Paper presented at 6th Annual Premier Global Event on ERM 2008 ERManagement Symposium, Chicago, United States. http://www.ermsymposium.org/2008/pdf/papers/Rodriquez.pdf