This is often the tendency of those whose responsibilities include insurance. Emphasize risk accountability at the business unit level. Excessive management at the corporate staff level builds risk aversion and denial, instead of risk awareness. Local units must take responsibility for their own risks, and their losses, without undue insulation. Teamwork of corporate staff and operating managers is essential to success in risk management.
Good information is the core of successful risk management.
Appropriate information on risk should also flow to senior management, the Board, shareholders, employees, customers, suppliers, financial partners and regulators. These latter audiences are often overlooked and under-served. The structure of risk management should reflect local conditions and forms of governance. In the US and UK, many risk managers will report to the Board of Directors. In those European countries where corporations have dual boards, this is inappropriate.