Empowered Enterprise Risk Management: Theory and Practice

Cover
Title Page
Copyright Page
Contents
Preface
Chapter 1 Introduction to Empowered Enterprise Risk Management
	Why a theoretical perspective?
	Lessons from practice
Chapter 2 Risk Defined
	Value-Creating Risk Management
	Risk Management
	Downside Risk Versus Upside Potential
	Subjective Probabilities
	Is Value the Right Metric?
	Risks Versus Risk-Taking
Chapter 3 Risk Theory
	Silos and their consequences
	The silo effect on risk management
	A theory of ERM
	The information problem of risk management
	The agency problem of risk management
	Over-management of risk
	Undermanagement of risk
	ERM as a solution
Chapter 4 Risk Culture
	Threats to Risk Culture
		Generalized optimism
		Inertia
		Short-termism
	Short-Termism: Causes and Consequences
	Corporate Cultures and Compensation Packages
	Creating the Behaviours That Support a Risk Culture
Chapter 5 Risk Governance
	The Role of the Board of Directors
	Risk Ownership
	A More Granular Look at Risk Ownership
	Risk Governance to Support Integrated Risk Management
	The Three Lines of Defence
	Risk Management Independence
Chapter 6 Risk Register
	What Should Go into a Risk Register
	Estimating Probability and Impact
	An Extended Risk Register
Chapter 7 Risk Response
	Risk Mitigation
	Risk Transfer
	Risk Retention
	The Integrated View
	The Integrated Risk Response
Chapter 8 Risk Appetite
	Why Risk Appetite Does Not Work
	How to Make Progress
	The Way Forward
	Risk Capacity
	Quantitative Example of Risk Capacity
Chapter 9 Risk Budgeting
	Risk Budgeting and Quantitative Models
	Financial Models with Accounting and Analytical Integrity
	Performance-at-Risk
	Introducing Critical Thresholds
Chapter 10 Risk Strategy
	Strategy Performance
	Strategy Formulation and Selection
	Core Strategic Risks and the Risk Radar
	Strategy Execution
	Strategic Interaction and Risk Management
Chapter 11 Risk in Practice: The Case of Equinor
	The Erm Vision
	Early Developments in Erm
	Risk mapping in Equinor
	Risk governance in Equinor
	Risk culture in Equinor
	Risk optimization
	ERM and strategy
	Final thoughts
Chapter 12 Concluding Remarks
	Revisiting the Erm Puzzles
Bibliography
Acknowledgements
Index
EULA