I’ve mentioned before that I find the most interesting things when I read more broadly outside of my field. Knowledge@Wharton, for instance, the online business journal of the Wharton School of the University of Pennsylvania. One of the articles in today’s issue is a summary of a Leadership Lecture given by Homeland Security Secretary Michael Chertoff describing the role of the government in managing risk.
“What do the global financial crisis, Hurricane Katrina and the 9/11 terrorist attacks have in common? All are examples of how not to manage risk, according to America’s top risk-management official, Homeland security secretary Michael Chertoff.
Risk management “lies at the core” of his department’s mission, Chertoff said at a recent Wharton Leadership Lecture in which he addressed areas where regulation — in moderation — can reduce risk in the marketplace. Managing risk was the first objective he saw before him when he was sworn in almost four years ago, Chertoff said, and it remains “maybe the fundamental social problem that we face in the 21st century.”
“Our mission is very broad — it covers everything from preventing and reducing our vulnerability to terrorist attacks; to protecting and reducing the vulnerabilities of our infrastructure, including our cyber-infrastructure, and then mitigating the consequences of disasters by strengthening our preparedness and response.”
Looking back at the 9/11 attacks and various natural disasters during his soon-to-conclude tenure, “or even the current financial crisis, it becomes very clear that we have not always handled risk properly,” Chertoff acknowledged.”
The article itself is intersting, but I found the “Additional Reading” at the end of the article really interesting:
Hurricane Katrina: Important Policy Questions Amid the Devastation and Recovery
Knowledge@WhartonA Month after Katrina: Lessons from Leadership Failures
Knowledge@WhartonThe Financial Risks of Terrorism: Balancing Public and Private Roles
Knowledge@WhartonCatastrophe Modeling: A New Approach to Managing Risk
Knowledge@Wharton
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