Enterprise Risk Management: An Important Strategic Discipline
Every wave of business failures or scandals leaves a legacy of lessons learned. For example, the dot.com debacle in the late 1990s taught investors not to ignore lack of profitability or business fundamentals and to avoid irrational exuberance. The Enron era emphasized the importance of financial reporting integrity, transparency and accountability. More recently, the stock option backdating claims demonstrated that “everyone does it” is not an excuse for wrongful behavior.