Risk Management

by Antonio, Borghesi; Gaudenzi, Barbara

• ISBN13: 9788847025301
• ISBN10: 8847025303
• Format: Hardcover
• Copyright: 2012-10-06
• Publisher: Springer Nature

Summary

The increasingly risky environment in which companies now operate is characterized by an increasing number of risk components, factors, sources, and drivers. Risk exists at various levels, inside the company and at the network level. The identification, evaluation and management of those risks requires the capability to coordinate several skills within the single company and in upstream and downstream relationships.The handbook provides an integrated approach and emerging methodologies which can effectively and efficiently support the protection of the business from adverse events and their effects.Different risk management prospective are combined. The corporate governance vision should be integrated with the perspective of operations management, financial management, business continuity management. In this sense the handbook provides concrete directions in order to build a risk management team and culture, describing business challenges and managerial tools.

Table of Contents

Reference Theories
From Social and Natural Science Comes a Historical Overview on the Concepts of Uncertainty and Risk	p. 3
Risk... Beginning with Newton and Heisenberg	p. 3
Uncertainty and Risk: Loss and Gain-A Historical View	p. 4
The First Risk Classifications	p. 7
References	p. 8
Governance and Risk Management	p. 9
Three Interpretative Models: The Paradigm of "Structure-Conduct-Performance", "System Theory", and "Value-Based Management"	p. 9
The North-American School and the Structure-Conduct-Performance Paradigm	p. 9
Business as an Open System and the Systemic Approach to Business Governance	p. 10
Value-Based Management	p. 11
Governance and Value Creation	p. 12
Corporate Governance: Regulatory Evolutions	p. 14
References	p. 17
Risk Management Perspectives	p. 19
Risk is Transversal	p. 19
From the Risk Spectrum to the Four Big Risks	p. 20
Four Risk Observation and Management Perspectives	p. 22
Risk Management: A Brief Historical Evolution	p. 26
References	p. 27
Risk Assessment: Approaches, Techniques and Good Practices
The Need for an Enterprise-Wide Approach to Risk Management	p. 31
Enterprise Risk Management	p. 31
Internal Auditing and Risk Management: Collaboration, Not Overlap!	p. 33
Business Risk Management	p. 33
Risk Management in the Organizational Structure	p. 35
ISO 31000 (2009)	p. 38
References	p. 41
Risk Identification	p. 43
What is Risk Identification?	p. 43
Organizational Charts	p. 45
Flow Charts	p. 46
Vulnerability Analysis and Matrix of Interdependencies	p. 48
Checklists	p. 49
Event Chain Diagrams and Decision Trees	p. 51
References	p. 52
Risk Analysis	p. 53
Qualitative or Quantitative Analysis?	p. 54
Introduction to Basic Statistical Tools	p. 54
Discrete Probability Distribution	p. 55
Continuous Probability Distribution	p. 55
Probable Maximum Loss and Annual Aggregate Loss	p. 57
Qualitative and Semi-Qualitative Methods for Risk Analysis	p. 59
Event Tree Analysis and Fault Tree Analysis	p. 60
Business Impact Analysis	p. 60
Business Continuity Planning (BCP)	p. 61
FMEA	p. 61
Dependency Modeling	p. 61
How Can the Risk Be Assessed when the Historical Data is Insufficient or Lacking?	p. 62
Risk Analysis for a Better Performance Improving	p. 63
Risk Analysis for Measuring Monetary Losses	p. 63
Risk Analysis for Measuring Underperformance	p. 64
Risk Evaluation	p. 65
External contribution 6.1: Analysis of Economic, Financial and Equity Indicators for the Assessment of Business Risk and Client Risk in an Industrial Group	p. 68
External contribution 6.2: Risk Management and Valuation: A Board Issue	p. 72
References	p. 75
Appendix to Part II	p. 76
Risk Treatment: Approaches, Techniques and Good Practices
Risk Treatment	p. 89
Risk Control	p. 89
Avoidance	p. 90
Loss Prevention	p. 90
Loss Reduction	p. 91
Separation, Duplication, Diversification	p. 91
Risk Financing	p. 92
Risk Financing: Retention	p. 93
Retention: Take a Proper Decision!	p. 93
Asset Reduction	p. 95
Absorption into the Operating Costs	p. 95
Self-insurance (Self-insured Retention)	p. 96
How Should Reserves be Allocated?	p. 97
Reserve Funds	p. 98
Contingent Credit Lines	p. 98
Risk Financing: Transfer	p. 99
Property	p. 100
Business Income	p. 101
General Liability	p. 102
Workers' Compensation	p. 103
Motor Vehicle Liability	p. 103
Employers' Liability	p. 103
Flood	p. 103
Directors' and Officers' Liability	p. 103
Take Care in Evaluating the Insurance Cost!	p. 104
What is a Captive Insurance Company?	p. 105
Decision Making	p. 106
How to Measure the Cost of Risk?	p. 107
External contribution 7.1: Innovation in the Context of Risk Management	p. 107
External contribution 7.2: The Role of an Insurance Partner	p. 111
References	p. 113
Supply Chain Risk Management and Business Continuity
Operational Risk and Supply Chain Risk Management	p. 117
What is Operational Risk?	p. 117
... and Supply Chain Risk?	p. 118
Logistics and Supply Chain Management	p. 118
The Goal of Customer Service	p. 119
The Goal of Flexibility	p. 119
Creating Resilient-and Less Vulnerable-Processes and Supply Chains	p. 120
How to Assess Supply Chain Risks	p. 122
Supply Chain Risk Management Strategies	p. 124
External contribution 8.1: What is Crisis Management?	p. 126
External contribution 8.2: Disaster Recovery for Industrial Plant: Manufacturing Industry	p. 131
References	p. 137
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