Heat Maps and Theater: The Risk Management Illusion

The red, amber, and green heat map is the most recognizable artifact of modern risk management, and one of the least informative. This book examines how risk functions in banks and corporations came to produce presentation rather than protection: the registers nobody reads, the appetite statements nobody applies, the committees that exist to have met. Written from two decades of watching these mechanisms from the inside, it separates the parts of the discipline that reduce loss from the parts that merely reassure, and sets out what a risk function has to look like to matter. PDF ebook, delivered immediately after purchase.