While enterprise risk management provides important benefits, limitations exist. In addition to factors discussed in Enterprise Risk Management -- Integrated Framework / Executive Summary (September 2004), limitations result from the realities that human judgment in decision making can be faulty, decisions on responding to risk and establishing controls need to consider the relative costs and benefits, breakdowns can occur because of human failures such as simple errors or mistakes, controls can be circumvented by collusion of two or more people, and management has the ability to override enterprise risk management decisions. These limitations preclude a board and management from having absolute assurance as to achievement of the entity’s objectives.
Note van redactie: We zien in deze tekst dat risk management gelimiteerd wordt door verschillende vormen van onzekerheden .
