The Executive Guide to Enterprise Risk Management Linking Strategy, Risk and Value Creation

by Chappell, Christopher

• ISBN13: 9781137374530
• ISBN10: 1137374535
• eBook ISBN(s): 9781137374547
• Format: Hardcover
• Copyright: 2013-12-24
• Publisher: Palgrave Macmillan
• More Book Details
• Purchase Benefits

Summary

Managing a successful business is about pursuing the appropriate business strategy based on the threats and opportunities that exist given the company's financial and managerial capabilities. Enterprise Risk Management (ERM) provides an approach to assessing and managing the outcomes of the strategic plan consistent with how the company manages its finances, its reputation and creates value.

Many recent ERM developments have been driven by regulatory pressure making the justification for budget easy, but acquiring buy-in more difficult. In many instances the tools are in place and sufficient, but little time has been spent helping employees understand how these enhance delivering the strategy and help in decision making. One of the key areas of focus is supporting senior management in dealing with ever more complex tools and assisting them in understanding how to question the experts and draw out explicitly what has been assumed implicitly.

This book provides a practical guide to assist in understanding, challenging and using the tools within enterprise risk management frameworks in a way that enhances the value created from the management of the business.

It is aimed at supporting questions such as:

1. How can I utilise the risk management tools to help me optimise my strategy?
2. How does risk appetite help me meet my performance objectives, assess risk-return optimisation, and allocate capital efficiently and effectively?
3. How can I challenge the experts to test whether my information is robust?
4. How do I get a culture that will support the traits of people in great companies – behave with courage, humility, self-control and passion?

The book is intended to support individuals who want to understand how to create business insight from integrating risk management into the strategic and operational management of the business and will appeal to board members, executives, managers and many more.

Author Biography

CHRISTOPHER CHAPPELL (London, UK) is an actuary and risk management consultant, with over 20 years' service in the financial services industry. He has significant experience in risk management, having led an executive team for a business unit of c. £5bn assets under management, and has repeatedly led the delivery of significant balance sheet enhancement through Asset Liability Management (ALM) and risk-reward optimisation work (value add over 10% of assets under management). He has also worked with Boards to design and embed enterprise risk management frameworks that provide strategic value, insight and solutions for the business. He is a Fellow of the Institute and Faculty of Actuaries (IFA), Chartered Enterprise Risk Analyst (CERA) and holds an MA, with triple honours, in economics, management science and metallurgy and the science of materials.

Table of Contents

1. Introduction
2. Defining an Enterprise Risk Management Framework
3. Developing a Business Strategy
4. Performance Management
5. Risk and Capital Modelling
6. Risk Culture
7. The Board and the New Chief Risk Officer