Enterprise Risk Management Today's Leading Research and Best Practices for Tomorrow's Executives

by Fraser, John R. S.; Simkins, Betty

• ISBN13: 9780470499085
• ISBN10: 0470499087
• Edition: 1st
• Format: Hardcover
• Copyright: 2010-01-07
• Publisher: Wiley

Summary

Essential insights on the various aspects of enterprise risk managementIf 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 managementThis informative guide will help you unlock the incredible potential of enterprise risk management, which has been described as a proxy for good management.

Author Biography

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.

Table of Contents

Foreword

Overview

Enterprise Risk Management: An Introduction and Overview

A Brief History of Risk Management

ERM and Its Role in Strategic Planning and Strategy Execution

The Role of the Board of Directors and Senior Management in Enterprise Risk Management

ERM Management, Culture and Control

Becoming the Lamp Bearer: The Emerging Roles of the Chief Risk Officer

Creating A Risk Aware Culture

ERM Frameworks

Identifying and Communicating Key Risk Indicators

ERM Tools and Techniques

How to Create and Use Corporate Risk Tolerance

How to Plan and Run a Risk Management Workshop

How to Prepare a Risk Profile

How to Allocate Resources Based on Risk

Quantitative Risk Assessment in ERM

Types of Risk

Market Risk Management and Common Elements with Credit Risk Management

Credit Risk Management

Operational Risk Management Chapter

Risk Management: Techniques in Search of a Strategy

Managing Financial Risk and its Interaction with Enterprise Risk Management

Bank Capital Regulation and Enterprise Risk Management

Legal Risk Post SOX and the Subprime Fiasco: Back to the Drawing Board

Financial Reporting and Disclosure Risk Management

Survey Evidence and Academic Research

Who Reads What Most Often? A Survey of Enterprise Risk Management Literature Read by Risk Executives

Academic Research on Enterprise Risk Management

Enterprise Risk Management: Lessons from the Field

Special Topics and Case Studies

Rating Agencies Impact on Enterprise Risk Management

Enterprise Risk Management: Current Initiatives and Issues

Establishing ERM Systems in Emerging Countries

The Rise and Evolution of the Chief Risk Officer: Enterprise Risk Management at Hydro One

Conclusion

Endnotes

About the Authors

Index

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