44 Barbwires of Enterprise Risk Management
15 years on, I’m still asking why quantitative ERM struggles to catch on in emerging markets like Malaysia — when capable executives still choose coloured heat maps over a 370-year-old science of uncertainty. The irony? The base tool for the upcoming IFRS S2 climate reporting is exactly that — ERM modelling. Now companies must quantify (or explain why they can’t) how climate-related risks and opportunities affect future financial prospects. Can ERM — in its current state — really handle...
Quantitative ERM 101
Why bother with Quantitative ERM — and why now? Because emerging disclosure standards require us to show, in numbers, how our business holds up under structural shifts in policy, markets and technology. Qualitative labels can’t express magnitude, likelihood or impact — which means we can’t demonstrate resilience in our future prospects or sustainability. With IFRS S2 now in force across regional exchanges, ‘prospects’ are defined in hard terms: future cashflows, cost of capital and...
Winston Peng