Practical enterprise risk management how to optimize business strategies through managed risk taking

Includes bibliographical references (page 305).

Machine generated contents note: Foreword by Steve Fowler -- Foreword by Mrutyunjay Mahapatra -- Acknowledgements -- 01 Introduction -- Outline -- Business is about taking risk -- The difference between taking managed and unmanaged risks -- Benefits of well-managed enterprise risk management -- The myths about risk -- Capacity to take risk -- Questions for senior management and the board to ask -- Notes -- 02 About enterprise risk management -- Outline -- Risk management -- Implementing the programme for ERM -- ERM - the process -- Essential attributes of ERM for delivering value and capacity -- Top level leadership in ERM -- Identifying risk: types of risk, risk lists and taxonomies -- Evaluating and prioritizing risk -- Governance, risk and compliance -- Questions for senior management and the board to ask -- Notes -- 03 Risk as an opportunity/threat to objectives and value drivers -- Outline -- Risk - opportunities and threats -- Risk as uncertainty -- Threat and opportunity management -- Dealing with threat -- Dealing with opportunity -- Differentiating between objectives, strategic goals and value drivers -- Questions for senior management and the board to ask -- Notes -- 04 Implementing an ERM programme -- Outline -- Establish the foundation - the operating model for ERM -- Documentation for ERM -- Language, oversight and governance -- Building capabilities: assess and develop responses and capabilities -- Improving capabilities: monitoring and communication -- Questions for senior management and the board to ask -- 05 Risk attitude, risk propensity and risk appetite -- Outline -- Risk aversion versus risk hungry -- Applications of a risk appetite tool -- Risk capacity versus tolerance -- Developing risk appetite frameworks -- The risk of not taking a risk -- Risk appetite and value drivers -- Organization behind the setting of risk appetite -- Examples of risk appetite statements -- Questions for senior management and the board to ask -- Notes -- 06 ERM culture, blame, boundaries and elephants in the room -- Outline -- ERM cultures and the blame culture -- Using risk appetite as a tool to destroy the blame culture -- Managing risk -- The link between managed risk taking, mice, Maslow and Herzberg -- The elephant in the room and conduct risk -- In the public interest -- Questions for senior management and the board to ask -- Notes -- 07 Embedding and integrating ERM -- Outline -- What does embedding mean? -- Main aspects of embedding ERM -- A 16-step plan for embedding ERM -- The three lines of play -- Questions for senior management and the board to ask -- Notes -- 08 Maturity in enterprise risk management -- Outline -- How risk maturity enables managed risk taking -- Action plan for measuring and tracking performance -- Questions for senior management and the board to ask -- Notes -- 09 Resilience and sustainable habits -- Outline -- Business continuity management -- The role of senior management -- Corporate social responsibility -- Questions for senior management and the board to ask -- Notes -- 10 Learning and communication -- Outline -- The learning habit -- ERM information systems -- External communication -- Questions for senior management and the board to ask -- Notes -- 11 Conformance, performance, roles, responsibilities and regulations -- Outline -- Managing conformance versus performance -- The role of boards in ERM -- Governance for ERM -- The role of internal and external audit in ERM -- Compliance requirements for risk management: various countries and industries -- Questions for senior management and the board to ask -- Notes -- 12 Deliverables from quantitative ERM approaches -- Outline -- Measuring and valuing -- Models for valuing risk and capital -- Own risk and solvency assessments - a useful model -- Stress testing and reverse stress testing -- Risks that cannot be valued -- Questions for senior management and the board to ask -- Notes -- 13 Simple, elegant ERM tools for senior management -- Outline -- The triangle of risk - trigger, environment, strength or weakness -- Using cause and consequence analysis to transform risk approach -- Macro and micro risk management -- Questions for senior management and the board to ask -- Note -- 14 ERM and performance management synergies -- Outline -- Risk management alignment within the organization -- Performance management -- Performance management methods -- Questions for senior management and the board to ask -- Notes -- 15 The key strategic questions for senior management and boards to ask themselves -- Outline -- Recognizing the risks of versus the risks to the strategic plan -- The key strategic questions -- Summary -- Appendix 1. Examples of corporate governance and ERM regulations -- Appendix 2. The main principles of the UK Code of Governance, October 2012 -- Appendix 3. Summary COSO guidance -- Appendix 4. Case study: Applying a more granular mathematical model to a risk for a non-financial organization -- Appendix 5. Capital and risk considerations for US insurers, from NAIC ORSA Guidance -- Appendix 6. Sample terms of reference for a board risk committee -- Appendix 7. Example of roles of CRO and ERM team -- Further Reading -- Index.

"Enterprise risk management (ERM) is a risk-based approach to running a business and strategic planning. An integrated approach to risk management, it ensures that each business function understands the various risks facing an organization and is properly managing and controlling those risks. Breaking down the theory on ERM, Practical Enterprise Risk Management helps risk managers see risk as both an opportunity and a threat and offers guidance on how to implement it. Based on ISO 31000, the international guidelines for applying current best practice, this book provides templates and examples that can be adapted for applying ERM in any industry. It provides models for Risk Adjusted Return on Capital to evaluate R.O.I and measure performance, advice on emergent risks, as well as best practice and advice on risk communication, transparency and protecting the brand. Including a comprehensive overview of risk management responsibilities for boards, Practical Enterprise Risk Management lifts the lid on the ERM process, helping managers to embed ERM into their organization, reach strategic goals and take more managed risks"--

"Practical Enterprise Risk Management addresses the real need for organizations to take more managed risks in order to maximise business strategies and achieve long term goals. Based on ISO 31000 and applying current best practice, it provides templates and examples that can be adapted for any industry. Breaking down the theory on enterprise risk management, it helps you see risk as both an opportunity and a threat whilst giving you guidance on how to implement it. It provides models for Risk Adjusted Return on Capital to evaluate R.O.I and measure performance, advice on emergent risks, as well as best practice and advice on risk communication, transparency and protecting the brand. Including a comprehensive overview of risk management responsibilities for boards, Practical Enterprise Risk Management lifts the lid on the whole process, helping you to embed ERM into your organization, reach your goals and take more managed risks"--