ERM at GM

[josshhhh1]

Are you guys aware of GM's involvement in ERM? They had an ERM area in house, I know. Could ERM have helped in any of this?

[Keep It Real, Yo]

If ERM can say, "Build better cars" then yes.

[Abnormal]

If ERM can say, "Build better cars starting 20 or 30 years ago" then yes.

I think you missed a qualifier on that.

[josshhhh1]

ERM says build better insurance, that's why we are innundated with it now in the exams. Besides, GM was paying their ERM more than actuaries so they must've seen potential to build better cars.

[Keep It Real, Yo]

ERM says build better insurance, that's why we are innundated with it now in the exams. Besides, GM was paying their ERM more than actuaries so they must've seen potential to build better cars.

Sure, but if they can't build as good a car as Toyota or Honda for a comparable price no amount of ERM is going to help.

Knowing what to do and actually accomplishing it are two very, very different things. The Cleveland Cavaliers probably need to find a mobile, dynamic post player to win an NBA title. But doing so without giving up crucial team members will be the tough part.

[E]

Yes, I'm not sure any amount of ERM would have helped GM. They would have needed an ERM staff in the 1980s (before ERM came into fashion). Theirs was a hole too deep to climb out of, and management probably would not have acted on any advisements from ERM professionals anyway. They were "too big to change."

[Mojo]

GM's ERM could short their own stocks while long Toyota's stocks. Guess that could help offsetting some of the losses. Wonder how that would of fly in the face of senior management.

well, maybe not. ;)