Beware of data leverage

Inadequacy of available data resources for effective decision-making is a widely recognised problem. David Rowe argues firms should be trying to measure the scale of the shortcoming

An old risk management maxim tells us exposures that cannot be measured also cannot be managed. It is a dangerous attitude to take, potentially undercutting softer, more judgemental insights, but it reflects a general truth – things that are quantified tend to be taken more seriously than those that are not. As many risk managers will know, losses prevented by effective oversight carry less weight