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Author Lam, James
Title Enterprise Risk Management : From Incentives to Controls
Imprint Somerset : John Wiley & Sons, Incorporated, 2014
©2014
book jacket
Edition 2nd ed
Descript 1 online resource (498 pages)
text txt rdacontent
computer c rdamedia
online resource cr rdacarrier
Series Wiley Finance Ser
Wiley Finance Ser
Note Intro -- Enterprise Risk Management -- Contents -- Preface -- Acknowledgments -- Section One Risk Mangement in Context -- Chapter 1 Introduction -- The Benefits of Risk Management -- Reason #1: Managing Risk Is Management's Job -- Reason #2: Managing Risk Can Reduce Earnings Volatility -- Reason #3: Managing Risk Can Maximize Shareholder Value -- Reason #4: Risk Management Promotes Job and Financial Security -- Integration Adds Value -- Cautionary Tales -- The Shortsightedness of Bausch & -- Lomb -- The Curtains Close on Kidder, Peabody -- Meltdown at Metallgesellschaft -- Morgan Grenfell's Asset Mismanagement -- Société Générale Blindsided -- MF Global Goes Under -- Chapter 2 Lessons Learned -- Lesson #1: Know Your Business -- Lesson #2: Establish Checks and Balances -- Lesson #3: Set Limits and Boundaries -- Lesson #4: Keep Your Eye on the Cash -- Lesson #5: Use the Right Yardstick -- Lesson #6: Pay for the Performance You Want -- Lesson #7: Balance the Yin and the Yang -- Chapter 3 Concepts and Processes -- Risk Concepts -- Exposure -- Volatility -- Probability -- Severity -- Time Horizon -- Correlation -- Capital -- Risk Processes -- Risk Awareness -- Set the Tone from the Top -- Ask the Right Questions -- Establish a Risk Taxonomy -- Provide Training and Development -- Link Risk and Compensation -- Risk Measurement -- Losses -- Incidents -- Risk Assessments -- Key Risk Indicators -- Risk Control -- Support Business Growth -- Support Profitability -- Control Downside Risks -- Risk Is a Bell Curve -- Chapter 4 What Is ERM? -- ERM Definitions -- The Benefits of ERM -- Organizational Effectiveness -- Risk Reporting -- Business Performance -- The Chief Risk Officer -- Components of ERM -- Corporate Governance -- Line Management -- Portfolio Management -- Risk Transfer -- Risk Analytics -- Data and Technology Resources -- Stakeholder Management
Section Two The Enterprise Risk Management Framework -- Chapter 5 Corporate Governance -- Codes of Conduct -- Best Practices -- Stakeholder Communication -- Board Independence -- Board Performance Assessment -- Executive and Board Compensation -- Linking Corporate Governance and ERM -- Risk Appetite and Policy -- Organizational Structure -- Risk Culture and Corporate Values -- Chapter 6 Line Management -- The Relationship between Line and Risk Functions -- Offense and Defense -- Policy and Policing -- Partnership Model -- Key Challenges -- Conflict Resolution -- Line Risk Management -- Incentive Alignment -- Nonfinancial Risk Measurement -- Best Practices -- Strategy and Planning -- Product and Business Development -- Product Pricing -- Business Performance Measurement -- Risk and Incentive Compensation -- Chapter 7 Portfolio Management -- The Theory of Active Portfolio Management -- Benefits of Active Portfolio Management -- Unbundling -- Risk Aggregation -- Risk Limits and Asset Allocation -- Influencing Transfer Pricing, Capital Allocation, and Investment Decisions -- Practical Applications of Portfolio Management -- Reinsurance -- Currency Hedging -- Chapter 8 Risk Transfer -- A Brief History of ART -- Advantages of ART -- Focus -- Customization -- Cost Reduction and Simplified Administration -- Earnings Stability -- Pitfalls of ART -- Understand the Product -- Know the Seller -- Regulatory and Accounting Standards -- A Look to the Future -- Case Study: Honeywell -- Case Study: Barclays -- Chapter 9 Risk Analytics -- Risk Control Analytics -- Scenario Analysis -- Economic Capital -- Risk Indicators -- Risk Optimization Analytics -- Risk-Adjusted Return on Capital -- Economic Income Created -- Shareholder Value and Shareholder Value-Added RAROC and EIC -- Market Risk Analytics -- Interest Rate Models -- Value-at-Risk Models
Asset/Liability Management Models -- Credit Risk Analytics -- Credit-Scoring Models -- Credit Migration Models -- Counterparty Credit Exposure Models -- Credit Portfolio Models -- Financial and Econometric Models -- Actuarial Models -- Operational Risk Analytics -- Top-Down Approaches -- Bottom-Up Approaches -- GRC Systems -- Chapter 10 Data and Technology -- Early Systems -- Data Management -- Interface Building -- Middleware -- Distributed Architectures -- Key Factors for a Successful Implementation -- Chapter 11 Stakeholder Management -- Employees -- Recruiting and Screening -- Training and Development -- Retention and Promotion -- Firing and Resignation -- Customers -- Acquisition and Retention -- Loyalty and Satisfaction -- Know Your Customer -- Handling Crisis -- Regulators -- Rating Agencies -- Shareholder Service Providers -- Business Partners -- Evaluating an Alliance -- Finding the Right Partner -- Monitoring Progress -- Section Three Risk Management Applications -- Chapter 12 Credit Risk Management -- Key Credit Risk Concepts -- Exposure, Severity, and Default -- Expected Loss -- Unexpected Loss -- Reserves and Economic Capital -- Off-Balance Sheet Credit Risk -- The Credit Risk Management Process -- Policy and Infrastructure -- Credit Granting -- Monitoring and Exposure Management -- Portfolio Management -- Credit Review -- Basel Requirements -- Best Practices in Credit Risk Management -- Basic Practice -- Standard Practice -- Best Practice -- Case Study: Export Development Corporation (EDC) -- Lines of Business -- Credit Risk at EDC -- EDC 's Credit Risk Policy Manual -- EDC 's Statement of Credit Risk Philosophy -- Chapter 13 Market Risk Management -- Types of Market Risk -- Market Risk Measurement -- Gap Analysis -- Duration -- Value-at-Risk -- Calculating VaR -- Three Flavors of VaR -- Estimating the Market Risk of Extreme Events
Stress Testing -- Scenario Analysis -- Verifying the Measurements: Back-Testing -- Conditional Value-at-Risk (CVaR) or Expected Shortfall -- Two Useful Rules of Thumb -- Market Risk Management -- Policies -- Best Practices in Market Risk Management -- Basic Practice -- Standard Practice -- Best Practice -- Case Study: Market Risk Management at Chase -- Risk Measurement and Management -- Obstacles and Successes -- A Look to the Future -- Chapter 14 Operational Risk Management -- Operational Risk-Definition and Scope -- Process Risk -- People Risk -- System Risk -- Event Risk -- Business Risk -- The Operational Risk Management Process -- Risk Policy and Organization -- Risk Identification and Assessment -- Capital Allocation and Performance Measurement -- Risk Mitigation and Control -- Risk Transfer and Finance -- Best Practice in Operational Risk Management -- Basic Practice -- Standard Practice -- Best Practice -- Emerging IT Risks -- Cyber Security -- Cloud Computing -- Social Media -- Case Study: Heller Financial -- Changes Within the Organization -- ERM and Operational Risk Management -- Heller's Evolving Risk Profile -- Objectives of ERM -- Organizational Changes -- Components of the ERM Project -- Implementation Phase -- Post Note -- Chapter 15 Business Applications -- Stage I: Minimizing the Downside -- Stage II: Managing Uncertainty -- Stage III: Performance Optimization -- The Further Evolution of Risk Management -- Chapter 16 Financial Institutions -- Industry Trends -- Consolidation -- Deregulation -- Competition -- Convergence -- Risk Management Requirements -- Risks by Industry Sector -- Cross-sector Risks -- Systemic Risk -- A Look to the Future -- Case Study: CIBC -- Chapter 17 Energy Firms -- Industry Trends -- Risk Management Requirements -- Price and Volume Risks -- Event and Weather Risks -- Risk Sharing -- Optionality -- Basis Risk
Price Transparency -- A Look to the Future -- Lessons Learned from Enron -- Keep Your Eye on the Cash -- Manage All of Your Risks -- Get Auditors Back to Basics -- Lessons Learned from the BP Oil Spill -- Chapter 18 Non-Financial Corporations -- Risk Management Requirements -- Credit Risks -- Market Risks and Hedging -- Stock Price Risk -- Investment Risks -- Hedging Risks -- Secondary Risks -- Operational and Insurable Risks -- Catastrophic Failures -- Business Risk -- Cultural Risks -- Pension Risks -- Outsourcing -- Reputational Risks -- Best Practices in Corporate Risk Management -- Risk Identification and Assessment -- Quantification and Reporting -- Management And Control -- Case Study: Microsoft -- Case Study: Ford -- Case Study: Airbus and Boeing -- Section Four A Look to the Future -- Chapter 19 Predictions -- The Profession of Risk Management -- A Career In Risk Management -- Education and Evangelism -- Technology and the Convergence of Risk Management -- Ten Predictions -- 2013 Looking Back -- Chapter 20 Everlast Financial -- Section Five ERM Implementation -- Chapter 21 ERM Implementation -- Benefits of Corporate Governance and ERM Practices -- McKinsey & -- Company (2002) -- Brown and Caylor (2004), Cheng and Wu (2005) -- Hoyt and Liebenberg (2009) -- Standard & -- Poor's (2010) -- ERM Implementation Requirements -- Definitions of Risk and ERM -- Governance Structure and Policies -- Risk Assessment and Quantification -- Risk Management -- Reporting and Monitoring -- ERM Maturity Model -- Stage 1: Definition and Planning (White Belt) -- Stage 2: Early Development (Yellow Belt) -- Stage 3: Standard Practice (Green Belt) -- Stage 4: Business Integration (Brown Belt) -- Stage 5: Business Optimization (Black Belt) -- Other ERM Maturity Models -- Risk Culture -- Chapter 22 Role of the Board -- Board Oversight Requirements
Current Board Practices
A fully revised second edition focused on the best practices of enterprise risk management Since the first edition of Enterprise Risk Management: From Incentives to Controls was published a decade ago, much has changed in the worlds of business and finance. That's why James Lam has returned with a new edition of this essential guide. Written to reflect today's dynamic market conditions, the Second Edition of Enterprise Risk Management: From Incentives to Controls clearly puts this discipline in perspective. Engaging and informative, it skillfully examines both the art as well as the science of effective enterprise risk management practices. Along the way, it addresses the key concepts, processes, and tools underlying risk management, and lays out clear strategies to manage what is often a highly complex issue. Offers in-depth insights, practical advice, and real-world case studies that explore the various aspects of ERM Based on risk management expert James Lam's thirty years of experience in this field Discusses how a company should strive for balance between risk and return Failure to properly manage risk continues to plague corporations around the world. Don't let it hurt your organization. Pick up the Second Edition of Enterprise Risk Management: From Incentives to Controls and learn how to meet the enterprise-wide risk management challenge head on, and succeed
Description based on publisher supplied metadata and other sources
Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2020. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries
Link Print version: Lam, James Enterprise Risk Management : From Incentives to Controls Somerset : John Wiley & Sons, Incorporated,c2014 9781118413616
Subject Business.;Management.;Portfolio management.;Risk management
Electronic books
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