Enterprise Risk Management (ERM) has come into its own in recent years. Most organisations attempt to measure their risks, sometimes gross (before any risk responses), sometimes net (after the risk responses). But more and more are looking at target risk (where do they want to be?). This paper explores the concept of target risk, looks at how organisations are using it, how it is defined and the benefits and pitfalls of using this concept. Based on his practical experience and dialogue with clients, consultants and other risk professionals, Richard Anderson, a former Big-4 partner, and currently running his own Governance, Risk Management and Assurance advisory practice, gives a fresh insight into an important concept that all directors, line managers and risk professionals need to master.
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