In this book, two experts on the topic raise the question of why many ERM programmes end up as box-checking silos with almost no connection to important decision-making processes, whereas others are empowered and end up having a profound impact on the firm’s culture, governance structures, and strategy process. The book establishes a path to empowered ERM by drawing on insights from theory and hard-won lessons from practice. Success factors enabling this transition are thoroughly discussed in a start-to-finish narrative describing the theoretical underpinnings of ERM, its proven best practices, and onto more advanced topic such as risk budgeting and the integration of ERM into strategic decision-making.
Table of Contents
Preface ix
Chapter 1: Introduction to Empowered Enterprise Risk Management 1
Chapter 2: Risk Defined 12
Chapter 3: Risk Theory 29
Chapter 4: Risk Culture 46
Chapter 5: Risk Governance 60
Chapter 6: Risk Register 78
Chapter 7: Risk Response 95
Chapter 8: Risk Appetite 116
Chapter 9: Risk Budgeting 132
Chapter 10: Risk Strategy 148
Chapter 11: Risk in Practice: The Case of Equinor 166
Chapter 12: Concluding Remarks 191
Bibliography 199
Acknowledgements 203
Index 205
