The Yin and Yang of Risk Management

a While ago I worked with a client where it soon became apparent that too much attention was given to financial indicators and not enough to intangible measurement. As I explained to the client there is was a need to "balance the yin and the yang" of the risk management approach in the company.


This comment emphasizes both "hard" and "soft" sides of risk management. The hard (yin) includes committees, policies & procedures, quantitative assessments, reporting, limits, audits and systems.

The soft (yang) reflects awareness, people, skills, integrity, incentives, cultures, values, trust and communication. Both sides are essential to a sound program and a sound reputation.

Is your risk management system adequately balanced?