Rethinking (operational) risk management

financial-crisis

"Reported earnings follow the rules and principles of accounting. The results do not always create measures consistent with underlying economics. However corporate management's performance is generally measured by accounting income, not underlying economics. Risk management strategies are therefore directed at accounting rather than economic performance"

Enron Risk Management Manual (quoted by Portnoy)1

This passage is frequently cited to point out how the pressure to show a positive picture

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