The article discusses the limitations of conventional risk management approaches, such as enterprise risk management (ERM), in effectively managing uncertainty and complexity in today's business environment. Despite the prevalence of ERM systems, significant unwanted events continue to occur, leading to serious damage to organizations. The article suggests that value-based risk management (VBRM) may be a more effective approach to improve the effectiveness of risk management and better align decision-making with the strategic needs of the business. VBRM focuses on managing risk based on its impact on the organization's value, rather than just identifying and assessing risks.
