This message has been cross posted to the following eGroups: Enterprise Risk Management and Captives/Alternative Risk .
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If you discover a new, urgent risk in your organization, how do you fund the cost of mitigation?
Does the affected business unit have to divert budget from other priorities? Does the ERM function have any discretionary budget to allocate? Does the C-level management make a decision to go outside of budget to address the problem?
I vaguely recall reading about a company that created an internal "grant" process using the retained earnings in their captive to either pay for or provide incentives for risk mitigation. Does anyone know which company did this, or is anyone doing something comparable?
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Brian Warren
Director - Risk Analysis
Microsoft Corporation
Redmond WA
United States
brianwar@microsoft.com-------------------------------------------