Risk management expert witnesses may provide reports regarding value at risk, risk management plans, the risk management process, and more. The Professional Risk Manager’s Association explains that best practice governance and risk management do not attempt to eliminate risk.
Rather, they are designed to help organizations maximize the risk‐adjusted return on capital whilst, at the same time, transforming uncertainty ‐ which is unmanageable and unmeasurable ‐ into risk, which can be identified, assessed and may be measurable.
Decision‐making in business is predicated on a belief in potential rewards, balanced with the knowledge, understanding and appreciation of all of the risks taken to pursue those potential rewards. The key individuals involved in governance and risk management (see section IV of this document) have a responsibility to stakeholders, including the general public, as well as to financial stability. They must ensure that they do not give disproportionate weight to personal gain, or to the benefit of the organization, to the detriment of public good and of financial stability.
Read more: PRMIA.com.