TABLE OF CONTENTS For or stage three and stage four companies, effective risk management is not only dependent upon a strong ethical framework; it is equally dependent upon a company's ability to sense potential risk issues, to analyze the situation using the skills and expertise of its employees, and to respond in a measured and effective way. To do that, a company needs to marshal the information and knowledge that is available to it, both inside and outside company walls. That process is knowledge management.
As we have seen, in order to really understand what potential risks a company is facing, it needs to actively manage the information that comes from this process in a strategic way. In short, a company needs to apply a combination of knowledge and risk management (KRM) techniques in order to use the ethical framework and international standards as part of an overall risk management policy. In fact, a company can't manage its risk today without managing its knowledge.
Knowledge management is a term that describes the process by which a company organizes, collects, shares, distributes, and learns collectively from employees, stakeholders, and the outside world. It is a broad framework for actively managing the information and knowledge that is available to it.
The knowledge management movement actually had it roots in the 1970s when a number of management theorists, including Peter Drucker in the United States and Humphrey Sturt in the United Kingdom, argued that as industrial society progressed, it would naturally...
