Unlock the incredible potential of enterprise risk management
There has been much evolution in terms of ERM best practices, experience, and standards and regulation over the past decade. Enterprise Risk Management: Today’s Leading Research and Best Practices for Tomorrow’s Executives, Second Edition is the revised and updated essential guide to the now immensely popular topic of enterprise risk management (ERM). With contributions from leading academics and practitioners, this book offers insights into what practitioners are doing and what the future holds. You’ll discover how you can implement best practices, improve ERM tools and techniques, and even learn to teach ERM. Retaining the holistic approach to ERM that made the first edition such a success, this new edition adds coverage of new topics including cybersecurity risk, ERM in government, foreign exchange risk, risk appetite, innovation risk, outsourcing risk, scenario planning, climate change risk, and much more. In addition, the new edition includes important updates and enhancements to topics covered in the first edition; so much of it has been revised and enhanced that it is essentially an entirely new book.
Enterprise Risk Management introduces you to the concepts and techniques that allow you to identify risks and prioritize the appropriate responses. This invaluable guide offers a broad overview, covering key issues while focusing on the principles that drive effective decision making and determine business success. This comprehensive resource also provides a thorough introduction to ERM as it relates to credit, market, and operational risk, as well as the evolving requirements of the board of directors’ role in overseeing ERM.
Through the comprehensive chapters and leading research and best practices covered, this book:
- Provides a holistic overview of key topics in ERM, including the role of the chief risk officer, development and use of key risk indicators and the risk-based allocation of resources
- Contains second-edition updates covering additional material related to teaching ERM, risk frameworks, risk culture, credit and market risk, risk workshops and risk profiles and much more. Over 90% of the content from the first edition has been revised or enhanced
- Reveals how you can prudently apply ERM best practices within the context of your underlying business activities
Filled with helpful examples, tables, and illustrations, Enterprise Risk Management, Second Edition offers a wealth of knowledge on the drivers, the techniques, the benefits, as well as the pitfalls to avoid, in successfully implementing ERM.
Table of Contents
Foreword to the Second Edition by Robert S. Kaplan Foreword to the First Edition by Robert S. Kaplan
Part I: Overview and Drivers of Enterprise Risk Management
Chapter 1: Enterprise Risk Management: An Introduction and Overview
Chapter 2: A Brief History of Risk Management
Chapter 3: Strategic Risk Management: The Third Paradigm
Chapter 4: The Role of the Board of Directors and Senior Management in Enterprise Risk Management
Chapter 5: How to Teach Enterprise Risk Management: A Learner-Centered Activities Approach
Chapter 6: The Role of the Board in Risk Management Oversight
Part II: Enterprise Risk Management, Culture, and Control
Chapter 7: ERM Frameworks
Chapter 8: Becoming the Lamp Bearer: The Emerging Roles of the Chief Risk Officer
Chapter 9: Creating a Risk-Aware Culture
Chapter 10: Key Risk Indicators
Chapter 11: Decision Risk Management
Chapter 12: Increasing Adoption of Enterprise Risk Management in the U.S. Federal Government
Chapter 13: Toolmaking in Risk Management: The Case of Core Values and the Formalization of “Risk Appetite”
Chapter 14: Incorporating Risk Acumen and Enterprise Risk Management into Innovation Approaches
Chapter 15: Scenario Planning as an Enrichment of ERM
Chapter 16: Unconscious Bias and Risk Management
Chapter 17: Cognitive Bias: A Practical Approach
Part III: Enterprise Risk Tools and Techniques
Chapter 18: Risk Appetite and Tolerance in Competitive Strategy
Chapter 19: How to Plan and Run a Risk Management Workshop
Chapter 20: How to Prepare a Risk Profile
Chapter 21: How to Allocate Resources Based on Risk
Chapter 22: Quantitative Risk Assessment in ERM
Chapter 23: Risk Appetite
Chapter 24: Organizational Decision Making
Chapter 25: The Challenges of and Solutions for Implementing Enterprise Risk Management
Part IV: Types of Risk
Chapter 26: Market Risk Management and Common Elements with Credit Risk Management
Chapter 27: Credit Risk Management
Chapter 28: Operational Risk Management
Chapter 29: Managing Financial Risk and Its Interaction with Enterprise Risk Management
Chapter 30: Climate Change Risk
Chapter 31: Cybersecurity: Risks and Governance
Chapter 32: Foreign Exchange Risk Management
Chapter 33: Risk Management and Outsourcing
Chapter 34: Leveraging ERM for Growth
Chapter 35: Commercial and D&O Insurance for Large Corporations
Chapter 36: Managing Risk Associated with Project Delivery: A How-To Guide
Part V: Special Topics and Case Studies
Chapter 37: The Rise and Evolution of the Chief Risk Officer: Enterprise Risk Management at Hydro One
Chapter 38: Enterprise Risk Management in the Public Sector: A First Look at the U.S. Department of Commerce
Chapter 39: A Review of Academic Research on Enterprise Risk Management
Chapter 40: Lessons from the Academy: ERM Implementation in the University Setting
Chapter 41: Enterprise Risk Management: Lessons from the Field
Chapter 42: Financial Reporting and Disclosure Risk Management
Chapter 43: Directors and Risk: Whither the Best Practices: Evidence from Canada
