THE CASE OF AIG: ENTERPRISE RISK MANAGEMENT FAILURE

This assessment explores AIG's 2008 ERM failure, focusing on governance breakdowns, inadequate risk oversight, and flawed incentive structures. It examines challenges in recognising risks, the prioritisation of short-term gains, and flaws in communication and risk models. Regulatory responses, including Dodd-Frank reforms, are highlighted alongside lessons from successful risk management practices. Actionable steps such as embedding ERM into organisational culture, improving governance, and...