Risk Taking Without Discipline: An ERM Perspective on Trump’s Leadership

by | Mar 24, 2026

Context and Responsibility

The role of President of the United States is one of the most demanding positions in the world. Decisions are made under intense pressure, with incomplete information, and with consequences that extend far beyond national borders. Any observation about Trump’s decision-making should be made with that context in mind.

Historically, it is common to see US presidents age visibly during their term. The weight of responsibility tends to show. In this case, the concern lies in how that responsibility is reflected in decision-making.

Observation of Risk Approach

This is my observation of Donald Trump’s approach to risk-taking and risk management over the past year, based on how he has positioned his decisions and how those decisions have unfolded over time.

At the start, he presented himself as someone willing to challenge complacency and the status quo. He claimed a strong handle on risk, a readiness to act decisively, and an ability to deliver outcomes where others had failed. In many environments, that kind of posture can reframe situations and create momentum. This can be positive.

Emergence of a Different Pattern

Over time, however, a different, more problematic pattern has emerged.

From an Enterprise Risk Management perspective, the pattern points to a lack of consistency in how risk positions are set and carried through. Positions have shifted many times, statements have been contradicted, and earlier commitments have not been followed with the required level of discipline. This indicates a misalignment between stated intent and actual execution.

Enterprise-Level Impact

The approach also shows limited consideration and understanding of broader impact. Enterprise Risk Management requires attention to stakeholders, interdependencies, and systemic consequences. Decisions influence markets, alliances, and stability across regions. These factors need to be accounted for as part of the decision-making process.

There is a recurring tendency in Trump to take strong positions without clear understanding and alignment with these wider considerations. The focus often appears very narrow, with insufficient attention to how actions affect others beyond the immediate objective he wants to achieve.

Integrity and Moral Compass in ERM

Furthermore, integrity and moral compass are essential requirements in ERM. They support objectivity of analysis, consistency of position, reliability of commitments, and accountability in decision-making. When these are not maintained, signals become unreliable and coordination across stakeholders weakens as trust evaporates.

Consequences Observed

Over time, the gap between what has been claimed and what has been demonstrated has widened. The initial positioning and claim of controlled and strategic risk management has shifted towards a reactive approach akin more to unprepared firefighting.

This worrying trend is based on observation of how risk is approached, communicated, and managed over time by the Trump administration.

Where This Is Leading

Without disciplined Enterprise Risk Management, risk exposure will not stabilise; instead, it will continue to increase. It is time to change course before the situation spins totally out of control.


 

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