Fundamentals of risk management : understanding, evaluating and implementing effective risk management

Cover
Contents
List of Figures
List of Tables
List of case studies
Foreword
Acknowledgements
Introduction
	Risk management in context
	Nature of risk
	Risk management
	Risk management terminology
	Benefits of risk management
	Features of risk management
	Book structure
	Risk management in practice
	Future for risk management
	Changes for the sixth edition
PART ONE
 Introduction to risk management
	Learning outcomes
	Further reading
	Caste studies
	01 What risk is and why it is important
		Definitions of risk
		Types of risks
		Risk description
		Levels of risk
		Classification systems
		Risk likelihood and impact
		Why understanding risk is important
		Impact of hazard risks
		Attachment of risks
		Risk and reward
		Attitudes to risk
		Risk and triggers
		Notes
	02 Risk is an opportunity as well as a threat
		Four types of risk
		Timescale of risk impact
		Minimize compliance risks
		Mitigate hazard risks
		Manage uncertainty (or control) risks
		Embrace opportunity risks
	03 Managing risk: The background, principles and aims of risk management
		Origins of risk management
		Taking calculated risks
		Specialist areas of risk management
		Enterprise risk management
		Levels of risk management sophistication
		Principles of risk management
		Objectives of risk management
		Risk management activities
		Effective and efficient core processes
		Implementing risk management
		Achieving benefits
		Risk management drives and enables activities
		Notes
	04 Risk management standards
		Use of risk management standards for listed companies
		Risk management process
		Context
		The standards in more detail
		Updating of RM terminology
		Note
	05 Risk management in context
		Scope of the context
		External context
		Internal context
		Risk management context
		Designing a risk register
		Using a risk register
		The future for risk registers
PART TWO
 Enterprise risk management
	Learning outcomes
	Further reading
	Case studies
	06 Enterprise risk management
		Enterprise-wide approach
		Definitions of ERM
		ERM in practice
		ERM and business continuity management
		Integrating strategy and performance
		Note
	07 Implementing enterprise risk management
		Investment in change
		A worthwhile change
		Integrating processes, reviewing and improving
		Plan, implement, measure and learn (PIML)
		Notes
	08 The context for ERM
		Changing face of risk management
		Lessons from the past: Financial and health crises
		The power of taking risks
		Managing emerging risks
		Increasing importance of resilience
		Note
	09 Setting objectives for ERM
		Risk management standards and objectives
		Strategy and objectives in standards
		Implementing objectives
		Aligning objectives to risk management principles
		Notes
PART THREE
 Assessment and analysis
	Learning outcomes
	Further reading
	Case studies
	10 Assessing risks: Considerations, causes and consequences
		Importance of risk assessment
		Approaches to risk assessment
		Risk assessment techniques
		Nature of the risk matrix
		Risk perception
		Attitude to risk
	11 Classifying risks
		Risk classification systems
		Time to impact
		Examples of risk classification systems
		FIRM risk scorecard
		PESTLE risk classification system
		Compliance, hazard, control and opportunity
	12 Analysing risks: The dimensions of risk
		Levels of risk
		Inherent and current level of risk
		Control confidence
		4Ts of hazard risk response
		Risk significance
		Risk capacity
		Evaluating risks: Risk appetite
		Note
	13 Controlling the downside of risk
		Risk likelihood
		Risk magnitude
		Hazard risks
		Loss prevention
		Damage limitation
		Cost containment
	14 Maximizing the upside of risk
		Defining the upside
		Opportunity assessment
		Riskiness index
		Upside in strategy
		Upside in projects/programmes
		Upside in operations
		Upside of compliance risks
		Note
PART FOUR
 Risk response
	Learning outcomes
	Further reading
	Case studies
	15 Managing and responding to risk
		The 4Ts of hazard response
		Strategic risk response
	16 Risk treatment controls for hazard risks
		Types of controls
		Cost of risk controls
	17 Ongoing monitoring and review
		The importance of monitoring
		Frequency
		Process
		Reporting
		Responsibility
	18 Insurance and risk transfer
		History of insurance
		Transferring the financial consequences of risk
		Types of insurance cover
		Evaluation of insurance needs
		Purchase of insurance
		Captive insurance companies
	19 Surviving shocks and disruption: ERM, BCP and resilience
		VUCA
		Business continuity planning and resilience
		Business continuity planning
		Business continuity standards
		Successful business continuity
		Business impact analysis
		Resilience, business continuity and ERM
		Civil emergencies
		Notes
PART FIVE
 Organizational environment
	Learning outcomes
	Further reading
	Case studies
	20 Business and the risk environment
		Dynamic business models
		Types of business processes
		Strategy and tactics
		Effective and efficient operations
		Ensuring compliance
		Reporting performance
	21 The organization's business model, visions and values
		Components of the business model
		Risk management and the business model
		Ethics and corporate governance
		CSR and risk management
		Supply chain and ethical trading
		Importance of reputation
		Notes
	22 How risk management adds value
		What is the evidence?
		Improved performance and key risk indicators
		The benefits of an ERM approach
		Climate change as a key risk
		Becoming more strategic
		Notes
PART SIX
 Risk strategy and culture
	Learning outcomes
	Further reading
	Case studies
	23 Risk architecture and strategy
		Architecture, strategy and protocols
		Risk architecture
		Risk management strategy
		Risk management protocols
		Risk management manual
		Risk management documentation
	24 Roles, responsibilities and documentation
		Allocation of responsibilities
		Range of responsibilities
		Statutory responsibilities of management
		Role of the risk manager
		Risk architecture in practice
		Risk committees
	25 Culture and behaviours
		Styles of risk management
		Steps to successful risk management
		Defining risk culture
		Measuring risk culture
		Alignment of activities
		Risk maturity models
	26 Risk appetite and tolerance
		Nature of risk appetite
		Risk appetite and the risk matrix
		Risk and uncertainty
		Risk exposure and risk capacity
		Risk appetite statements
		Risk appetite and lifestyle decisions
		Note
	27 Risk training and communication
		Consistent response to risk
		Risk training and risk culture
		Risk information and communication
		Shared risk vocabulary
		Technology to support risk management process and procedures
		Risk management information systems
	28 Risk practitioner competencies
		Competency frameworks
		Range of skills
		Communication skills
		Relationship skills
		Analytical skills
		Management skills
PART SEVEN
 Corporate governance and risk management
	Learning outcomes
	Further Reading
	Case studies
	29 Introducing corporate governance
		Corporate governance
		OECD principles of corporate governance
		Future direction of corporate governance
		London Stock Exchange corporate governance framework
		Corporate governance for a financial services organization
		Corporate governance for a government agency
		Evaluation of board performance
		Notes
	30 Stakeholders, ethics and corporate social responsibility
		Range of stakeholders
		Stakeholder dialogue
		Stakeholders and core processes
		Stakeholders and strategy
		Stakeholders and tactics
		Stakeholders and operations
		Notes
	31 Different approaches to risk management
		Operational risk management
		Project risk management
		Supply chain risk management
		Note
PART EIGHT
 Risk assurance and reporting
	Learning outcomes
	Further reading
	Case studies
	32 The control environment
		Nature of internal control
		Resilience of the organization in the event of external shock
		Purpose of internal control
		Control environment
		Features of the control environment
		Expectations of internal control
		CoCo framework of internal control
		Good safety culture
		The future for control processes
		Note
	33 Internal audit activities
		Scope of internal audit
		Role of internal audit
		Undertaking an internal audit
		Risk management and internal audit
		Management responsibilities
		Five lines of assurance
	34 Risk assurance techniques
		Audit committees
		Role of risk management
		Risk assurance
		Risk management outputs
		Control risk self-assessment
		Benefits of risk assurance
	35 Reporting on risk management
		Risk reporting
		Sarbanes-Oxley Act of 2002
		Risk reports by US companies
		Charities' risk reporting
		Public sector risk reporting
		Government report on national security
		Notes
Appendix A: Abbreviations and acronyms
Appendix B: Glossary of terms
Index