The Risk Management Handbook: A Practical Guide to Managing the Multiple Dimensions of Risk

The Risk Management Handbook: A practical guide to managing the multiple
dimensions of risk
Copyright
Contents
About the authors
	The editor
		Dr David Hillson
	Chapter authors: Multidimensional risk
management
		Liz Taylor
		Robert Toogood
		Dr Ariane Chapelle
		Edward Sankey
		Dr Dale F Cooper
		Robert McKellar
		Arif Zaman
		Linda Conrad
		Ian Clark
		Dr Lynda Bourne
		Patrick Weaver
		Giusi Meloni
		Ben Rendle
	Chapter authors: Emerging trends
		Daniel Wagner
		Dr Veronica Bowman
		Dr Keith Smith
		Dr Richard Barber
		Dr Erica Seville
		Dr Ruth Murray-Webster
		Alex Hindson
		Dr Greg Ker-Fox
		Magda Stepanyan
01:
Introducing risk
	What do you do?
	What is risk?
		Risk and uncertainty
		Risk and objectives
		Risk, threat and opportunity
	Why does it matter?
	And finally…
	References
PART ONE: Multidimensional risk
management
	02: Enterprise Risk
Management
		Why does Enterprise Risk Management
matter?
			Survival and uncertainty
			Level at which risk is managed
			Beyond overview – risk management skills for
top-level management
			Enterprise risk appetite, capacity and tolerance
		What is Enterprise Risk Management?
			All encompassing
			Regulation
			Top-level engagement
			Managed risk taking
		What is risk in this context?
			Risks to the enterprise as a whole
			Timing and speed of change of risk
		How is enterprise risk managed?
			Value drivers
			Design
			Implementation
			Embedding
			Communication
		How does Enterprise Risk Management fit?
		What’s next?
		Find out more
	03:
Governance, Risk and Compliance
		Why does GRC matter?
		What is Governance, Risk and
Compliance (GRC)?
			Relationships
			Culture
		What is risk in this context?
			Inconsistency
			Perceptions
			Disconnects
		How is GRC managed?
			Literature review
			Barriers to implementation
		How does GRC fit?
		What’s next?
		Find out more
	04:
Operational Risk Management
		Why does Operational Risk Management
matter?
		What is Operational Risk Management?
			Systematic and integrated risk management
			Prioritization in risk management through
common metrics
			Special risk situations
			Risk exposure modelling and risk aggregation
			Dealing with political and regulatory developments
		What is risk in this context?
			Defining operational risk
			Loss and impact measurement
			Link with other risks in financial firms
		How is operational risk managed?
			Accountability
			Communication and training
			Risk modelling – the Loss Distribution Approach
			Risk and Control Self-Assessment
			Assessing extreme events
			Combining day-to-day risk management with
high-impact eventualities
			Aggregation within risk groups
			Operational Risk Management: risk appetite,
tolerance and indicators
			Risk reporting to risk committee, directors
and management
		How does Operational Risk Management fit?
		What’s next?
			Emerging risks
		Find out more
	05: Project, programme and portfolio risk
management
		Why does project, programme and portfolio risk management matter?
			Projects, programmes and portfolios
			Phases in the life of projects, programmes
and portfolios
		What is project, programme and portfolio
risk management?
			Purpose of P3 risk management
		What is risk in this context?
		How is risk managed in projects, programmes
and portfolios?
			Relevant standards and guidelines
			The risk management process
			Communicate and consult
			Establish the context
			Identify the risks
			Analyse the risks
			Evaluate the risks
			Treat the risks
			Monitor and review
			Frameworks and governance
			Risk management in tendering
			Quantitative analysis of uncertainty
		How does project, programme and portfolio
risk management fit?
		What’s next?
			PPPs and alliances
			Mega-projects and complexity
		Find out more
	06: Political risk
management
		Why does political risk management
matter?
		What is political risk management?
		What is risk in this context?
		How is political risk managed?
			The political risk management planning process
		How does political risk management fit?
		What’s next?
		Find out more
	07: Reputational
risk
		Why does reputational risk matter?
		What is reputational risk management?
		What is risk in this context?
			Customers/consumers
			Employees
			Shareholders
		How is reputational risk managed?
		How does reputational risk
management fit?
		What’s next?
		Find out more
	08: Supplychain risk
management
		Why does supply chain risk management
matter?
			The supply chain is only as strong as its
weakest link
			Supply chain disruptions increasingly impact financial
performance
			Benefits of risk management in supply chain, business
continuity and value mapping
		What is supply chain risk management?
			Strategic risk: another link in the supply chain
			Lessons learned
		What is risk in this context?
			Understanding supply chain impacts
			Supply chain disruptions are caused by cyber
challenges and a myriad of other issues
		How is supply chain risk managed?
			Supply chain risk management and insurance
strategies
		How does supply chain risk management fit?
			A strong enterprise risk culture can correlate
to improved profitability
			Eyes wide open
		What’s next?
			Opportunities for improvement
			An integrated approach to corporate strategy and
supplier risk management
		Find out more
			Disclaimer
	09: Business Continuity
Management
		Why does business continuity matter?
		What is Business Continuity Management?
			Definitions
		What is business continuity in this context?
		How is business continuity managed?
			Stage 1: Business Impact Analysis and risk assessment
			Stage 2: Design continuity strategies
			Exercising
			Validation and review
		How does Business Continuity Management fit?
		What’s next?
			Moving towards organizational resilience
		Find out more
	10: Managing
stakeholder risk
		Who are stakeholders?
		What is stakeholder risk management?
		What is risk in this context?
			Risk is not rational
			Perception of risk – why does it matter?
			The innate effect of personal characteristics on risk
perception
			Communicating risk upwards
		How is stakeholder risk managed?
			Identification
			Prioritization
			Engagement
			Monitoring the effect of engagement
			Identifying stakeholder risks
			Reducing stakeholder risk
		How does stakeholder risk management fit?
		What’s next?
		Find out more
	11: Ethics in risk
management
		Why do ethics matter in risk
management?
		What is ethical risk management?
		What is risk in this context?
		How is ethical risk managed?
		How does ethical risk management fit?
		What’s next?
		Find out more
			Acknowledgement
	12: Cyber risk
management
		Why does cyber risk management matter?
		What is cyber risk management?
		What is risk in this context?
		How is cyber risk managed?
			Developing a clear understanding of objectives for
tackling cyber opportunities and risks
			Agreeing a robust response to address cyber
opportunities and risks, especially when they impact
			Greater awareness of ‘cost-effective’ cyber opportunity
and risk decisions
			An acknowledgement that there is no ‘one size fits all’
approach
			Recognition that cultural factors, not just IT factors,
play a critical role in managing cyber risks
		How does cyber risk management fit?
			Cyber risks are considered within an Enterprise Risk
Management framework
			A wider perspective is developed over cyber risk
impacts
			Wider non-economic and social cyber risk impacts are
assessed
			A greater emphasis is given to cyber opportunity
management
		What’s next?
			An increased and diversified use of online social media
			The Internet of Things
			IT consumerization
			Cloud computing
		Find out more
PART TWO: Emerging
trends
	13: Country risk
management
		The importance of anticipation
		A sound cross-border risk management
platform
		Best practices
		Why every manager needs to be a country
risk manager
		Summary: staying ahead of the curve
		References and further reading
	14: Communicating
uncertainty
		Background
			Risk
			Uncertainty
			Communication
		An effective communication strategy
			Consider how you will communicate early on
			Know your audience
			Engage ahead of time
			Less is more
			Don’t hide your uncertainty
		Summary: case study
		References
	15: Risk-based
decision making
		Introduction
		The decision maker’s conundrum
		Understanding how decisions are made
		Dual processing
		Clockspeed vs velocity
		Situation awareness and decision making
		Decision controls
		Summary
			Acknowledgement
		References
	16:
Risk leadership in complex organizations
		Introduction
		Getting the assumptions right
		Useful principles for leaders working
in and on uncertainty
		Systemic risk leadership in practice
		Summary: what this means for leaders of
organizations
		References
	17:
Resilience
		What is a resilience approach?
		Resilience and risk management
		Summary: proactive ways to develop
resilience
		References
	18: Organizational change management
and risk
		Why is change risky?
		Why is risk analysis and management vital
during change?
		Critical success factors if risk management
is to help change management
		Summary
		References
	19:
Risk culture
		What is risk culture and why is
it important?
		How to approach risk culture
		Diagnosing risk culture
		Risk awareness
		Changing or influencing risk culture
		Case study
		Summary
		References
	20: Social media
risk
		Introduction
		The social media business model
		Opportunities created by social media for
business
			Direct marketing
			Building reputation capital
			Recruitment
			Communication
			Customer support
			Education and training
		Threats associated with social media for
business
			Reputation risk
			Loss of productivity
			Legal and regulatory risk
			Security breaches
			Recruitment fraud
			Damage to employer of choice profile
			Publicizing bad service
			Data misuse
			Loss of intellectual property
		Exploiting social media opportunities
			Data mining
			Communicating with audiences
			Crisis communication
			Increasing revenue
		Mitigating social media threats
			Social media plan
			Reputation risk
			Listening posts
			Page guidelines
			Staff personal devices
			Industrial espionage
			Staff training
			Managing access to social media sites
			Safety
			Terms and conditions of use
			Regulatory compliance
		Summary
			Acknowledgement
		References and further reading
	21: Risk in development
aid practice
		Risk as an external danger
		Risk as an accident associated
with human fault
		Risk as a social phenomenon
		Risk as a global ‘grand challenge’
or mega risks
		Summary
		References
	Epilogue: The future of risk
management
		Risk is everywhere
		Risk management is everywhere
		What next?
			Expansion
			Contraction
			Cycle
		Where now?
		References and further reading
INDEX