Enterprise Risk, Enterprise Risk Reward

Risk is opportunity.

So says the Society of Actuaries. On its website. In its correspondence. Seemingly everywhere.

If that sentiment is, in fact, the way we want to perceive risk, then both enterprise risk management and its related component within incentive compensation plans seem unclouded in their applications. Note that here we’re separating general management of enterprise risks from the more formal “Enterprise Risk Management.” They are not the same.