BP accepted the high risks of drilling several miles below the surface of the Gulf of Mexico because of the high value of the oil and gas it hoped to extract.
Reputations will remain damaged for as long as actions are not taken to regain that trust. At the annual capital allocation meeting, line managers have to defend their proposals in front of their peers and top executives.
Hydro One, a large company, has a relatively small risk group to generate risk awareness and communication throughout the firm and to advise the executive team on risk-based resource allocations.
Hydro One strengthens accountability by linking capital allocation and budgeting decisions to identified risks. Category I: Preventable risks. Most companies extrapolated from recent U. Anette Mikes is an assistant professor in the accounting and management unit at Harvard Business School.