Essential insights on the various aspects of enterprise risk management
If you want to understand enterprise risk management from some of the leading academics and practitioners of this exciting new methodology, Enterprise Risk Management is the book for you. Through in-depth insights into what practitioners of this evolving business practice are actually doing as well as anticipating what needs to be taught on the topic, John Fraser and Betty Simkins have sought out the leading experts in this field to clearly explain what enterprise risk management is and how you can teach, learn, and implement these leading practices within the context of your business activities. In this book, the authors take a broad view of ERM, or what is called a holistic approach to ERM.
Enterprise Risk Management introduces you to the wide range of concepts and techniques for managing risk in a holistic way that correctly identifies risks and prioritizes the appropriate responses. This invaluable guide offers a broad overview of the different types of techniques: the role of the board, risk tolerances, risk profiles, risk workshops, and allocation of resources, while focusing on the principles that determine business success. This comprehensive resource also provides a thorough introduction to enterprise risk management as it relates to credit, market, and operational risk, as well as the evolving requirements of the rating agencies and their importance to the overall risk management in a corporate setting. Filled with helpful tables and charts, Enterprise Risk Management offers a wealth of knowledge on the drivers, the techniques, the benefits, as well as the pitfalls to avoid, in successfully implementing enterprise risk management.
Discusses the history of risk management and more recently developed enterprise risk management practices and how you can prudently implement these techniques within the context of your underlying business activities
Provides coverage of topics such as the role of the chief risk officer, the use of anonymous voting technology, and risk indicators and their role in risk management
Explores the culture and practices of enterprise risk management without getting bogged down by the mathematics surrounding the more conventional approaches to financial risk management
This informative guide will help you unlock the incredible potential of enterprise risk management, which has been described as a proxy for good management.
John Fraser is the Vice President, Internal Audit, and Chief Risk Officer of Hydro One Networks Inc. He is an Ontario and Canadian Chartered Accountant, a Fellow of the Association of Chartered Certified Accountants (U.K.), a Certified Internal Auditor, and a Certified Information Systems Auditor. Fraser has more than 30 years' experience in the risk and control field, mostly in the financial services sector. He is currently the Chair of the Advisory Committee of the Conference Board of Canada's Strategic Risk Council and a Practitioner Associate Editor of the Journal of Applied Finance. Betty J. Simkins, PhD, is the Williams Companies Professor of Business and Professor of Finance at Oklahoma State University. She has published more than 40 journal articles and book chapters. Many of these articles are on the topics of risk management and enterprise risk management. Simkins is also active in the finance profession and currently serves on the board of directors for the Financial Management Association, as co-editor of the Journal of Applied Finance, as Executive Editor of FMA Online, and as past president of the Eastern Finance Association. Prior to entering academia, she worked for ConocoPhillips and Williams Companies.
Foreword by Robert S. Kaplan. Part I: Overview. Chapter One: Enterprise Risk Management: An Introduction and Overview. Chapter Two: A Brief History of Risk Management. Chapter Three: ERM and Its Role in Strategic Planning and Strategy Execution. Chapter Four: The Role of the Board of Directors and Senior Management in Enterprise Risk Management. Part II: ERM Management, Culture and Control. Chapter Five: Becoming the Lamp Bearer: The Emerging Roles of the Chief Risk Officer. Chapter Six: Creating A Risk Aware Culture. Chapter Seven: ERM Frameworks. Chapter Eight: Identifying and Communicating Key Risk Indicators. Part III: ERM Tools and Techniques. Chapter Nine: How to Create and Use Corporate Risk Tolerance. Chapter Ten: How to Plan and Run a Risk Management Workshop. Chapter Eleven: How to Prepare a Risk Profile. Chapter Twelve: How to Allocate Resources Based on Risk. Chapter Thirteen: Quantitative Risk Assessment in ERM. Part IV: Types of Risk. Chapter Fourteen: Market Risk Management and Common Elements with Credit Risk Management. Chapter Fifteen: Credit Risk Management. Chapter Sixteen: Operational Risk Management Chapter. Chapter Seventeen: Risk Management: Techniques in Search of a Strategy. Chapter Eighteen: Managing Financial Risk and its Interaction with Enterprise Risk Management. Chapter Nineteen: Bank Capital Regulation and Enterprise Risk Management. Chapter Twenty: Legal Risk Post SOX and the Subprime Fiasco: Back to the Drawing Board. Chapter Twenty One: Financial Reporting and Disclosure Risk Management. Part V: Survey Evidence and Academic Research. Chapter Twenty Two: Who Reads What Most Often? A Survey of Enterprise Risk Management Literature Read by Risk Executives. Chapter Twenty Three: Academic Research on Enterprise Risk Management. Chapter Twenty Four: Enterprise Risk Management: Lessons from the Field. Part VI: Special Topics and Case Studies. Chapter Twenty Five: Rating Agencies Impact on Enterprise Risk Management. Chapter Twenty Six: Enterprise Risk Management: Current Initiatives and Issues. Chapter Twenty Seven: Establishing ERM Systems in Emerging Countries. Chapter Twenty Eight: The Rise and Evolution of the Chief Risk Officer: Enterprise Risk Management at Hydro One. Conclusion. Endnotes. About the Authors. Index.