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A WORLD OF DANGERROADS TO RUINRoads to Ruin, A Study of Major Risk Events: Their Origins, Impact and Implications, a2011 report by Cass Business School on behalf of Airmic, highlights seven key risk areasthat are potentially inherent in all organisations. They can pose a real threat to any firm,whatever the size, which fails to recognise and manage them. They are:1. Board skill and NED control: risks arising from limitations in board skills andcompetence and on the ability of the NEDs effectively to monitor and, as necessary,control the executive arm of the company;2. Board risk blindness: risks from board failure to recognise risks inherent in thebusiness, including risks to business model, reputation and ‘licence to operate’, to thesame degree that they engage with reward and opportunity;3. Inadequate leadership on ethos and culture: risks from a failure of board leadershipand implementation on ethos and culture;4. Defective internal communication: risks from the defective flow of importantinformation within the organisation, including up to board level;5. Risks from organisational complexity and change: including risks followingacquisitions;6. Risks from incentives: including effects on behaviour resulting from both explicit andimplicit incentives;7. Risk ‘glass ceiling’: risks arising from the inability of risk management and internalaudit teams to report to and discuss, with both ‘C-suite’ executives and NEDs, potentialdangers emanating from higher levels of their organisation’s hierarchy, involving forinstance, ethos, behaviour, strategy and perceptions.Case studies from Airmic’s Roads to Ruin report, illustrating many of these seven riskareas, are highlighted on pages 32, 39, 52, 60 and 72.12