Managing the Risks of Risk Management

Enterprise Risk Management (ERM) is a field of enormous importance due to its economic repercussion. More and more companies are paying attention to it, given there is significant economic savings for attending to the various aspects of risk. At the same time, ERM has witnessed a shift in the way firms manage the many uncertainties that stand in the way of achieving their strategic, operational and financial objectives. Nevertheless, existing Risk Management Systems (RMIS) are neither powerful, nor flexible enough to model the complexity of the risk management process. In this paper we will examine these issues in greater detail, explaining the existing problem and proposing a software system that addresses them. We will also show the actual design and operation of ARMISTICE (Advanced Risk Management Information System: Tracking Insurances, Claims and Exposures), a successful RMIS case study.