Abstract: many are convinced that the transition of a business to risk-based management is a mistake, especially after the failure of QRM (Quantitative Risk Management) techniques during the global financial crisis. The concern stems from fears that top-down risk management will hinder the development of business and impede innovation. This thesis was reflected in the Hiding Hand principle formulated by Albert Hirschman. An alternative view is that risk management should be a lifeline for companies — a tool to help identify, assess, and minimize risks that contribute to cost-effective business operations. According to Robert Kaplan, the author of the Revealing Hand principle, the critic of Hirschman’s views, with the right approach, the implementation of risk management leads to an increase in the capitalization of firms, gives them the opportunity to take on more risky projects and follow more risky strategies. But this requires overcoming serious individual and organizational prejudices that prevent managers and employees from more adequate considering and analyzing the problem of enterprise risk exposure. This article examines alternative concepts of risk management: the Hiding Hand and the Revealing Hand, summarizes the results of studies on the feasibility of their implementation in practice, and also highlights the barriers that organizations need to overcome to build modern and effective risk management systems.
Keywords: risk, risk management, Hiding Hand principle, Revealing Hand principle, risk management system