Poor economic performance and lower profitability are put down to the riskier world we inhabit. Yet in the past earning the high return was almost synonymous with taking the big risk. Risk has been turned into a scapegoat for not making sufficient profits in the slump. Indeed risk consciousness has almost become a substitute for thinking about profit-making. Managers seem more concerned to develop strategies to limit risk than to try making money.
Much business practice is now about minimising risk.
Corporate risk management began to rise to prominence in the 1970s. Since then dealing with risk has become of even greater interest to managers. The buzz theme in management theory these days is that risk management is 'too important' to be left to risk managers. It is now considered integral to the job of any manager, from line manager to chief executive. There has clearly been a sea change in risk consciousness among managers, management theorists and economists.