Up until this point, we implicitly assumed that managers would be designing a control system from scratch. However, blank-slate conditions only exist for start-ups. For organizations in operation, risk management decisions are made with controls already in place. Even failing organizations, which are commonly described as “out of control,” have more controls in place than one might realize. Presumably, the doors still have locks, products are still being inspected, and the organization still has a hierarchy where supervisors are responsible for their subordinates. So, generally, managers are modifying existing controls and implementing new controls within an active control system. In this context, altering a single ...
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