Fundamentals of Risk Management: Understanding, Evaluating & Implementing Effective Risk Management Book

List of Figures List of Tables Preface Acknowledgements

Introduction

Part One: Introduction to risk management
Learning outcomes for Part One Part One Further reading

01 Approaches to defining risk
Definitions of risk Types of risks Risk description Inherent level of risk Risk classification systems Risk likelihood and magnitude

02 Impact of risk on organizations
Level of risk Impact of hazard risks Attachment of risks Risk and reward Risk and uncertainty Attitudes to risk

03 Types of risks
Timescale of risk impact Hazard, control and opportunity risks Hazard tolerance Mitigation of hazard risks Management of uncertainties Embracing opportunities

04 Development of risk management
Origins of risk management Changes in the marketplace Insurance origins of risk management Specialist areas of risk management Enterprise risk management Levels of risk management sophistication Bow-tie representation of risk management

05 Principles and aims of risk management
Principles of risk management Importance of risk management Risk management activities Efficient, effective and efficacious Implementing risk management Achieving benefits

06 Risk management standards
Scope of risk management standards Risk management process Risk management framework COSO ERM cube Features of RM standards Alternative approaches Case studies:
Generali Group: Risk factors Rio Tinto: Managing risk effectively

Part Two: Risk strategy
Learning outcomes for Part Two Part Two Further reading

07 Risk management framework
Risk architecture, strategy and protocols Risk management manual Risk management architecture Risk management strategy Risk management protocols Establishing the context

08 Risk management documentation
Risk management documentation Risk response and improvement plans Event reports and recommendations Risk performance and certification reports Designing a risk register Using a risk register

09 Risk management responsibilities
Allocation of responsibilities Range of responsibilities Statutory responsibilities of management Role of the risk manager Risk architecture Risk committees

10 Risk-aware culture
Styles of risk management Defining risk culture Measuring risk culture Risk culture and risk strategy Alignment of activities Risk maturity

11 Risk training and communication
Consistent response to risk Risk training and risk culture Risk information and communication Shared risk vocabulary Risk information on an intranet Risk management information systems (RMIS)

12 Risk practitioner competencies
Competency frameworks Range of skills Communication skills Relationship skills Analytical skills Management skills Case studies:
Invensys: Responsibilities and actions Coventry Building Society: Governance and oversight

Part Three: Risk assessment
Learning outcomes for Part Three Part Three Further Reading

13 Risk assessment considerations
Importance of risk assessment Approaches to risk assessment Risk assessment techniques Risk matrix Risk perception Risk appetite

14 Risk classification systems
Short, medium and long-term risks Nature of risk classification systems Examples of risk classification systems FIRM risk scorecard PESTLE risk classification system Hazard, control and opportunity risks

15 Risk likelihood and impact
Application of a risk matrix Inherent and current level of risk Control confidence
4T's of risk response Risk significance Risk capacity 

16 Loss control
Risk likelihood Risk magnitude Hazard risks Loss prevention Damage limitation Cost containment

17 Defining the upside of risk
Upside of risk Opportunity assessment Riskiness index Upside in strategy Upside in projects Upside in operations

18 Business continuity planning
Importance of business continuity planning and disaster recovery planning Business continuity standards Successful business continuity planning and disaster recovery planning Business impact analysis (BIA)
Business continuity planning and enterprise risk management Civil emergencies Case Studies:
BG Group: Principal risks and uncertainties IHG: Managing risks in hotels

Part Four: Risk response
Learning outcomes for Part Four Part Four Further Reading

19 Enterprise risk management
Enterprise-wide approach Definitions of ERM ERM in practice ERM and business continuity ERM in energy and finance Future development of ERM

20 Importance of risk appetite
Risk capacity Risk exposure Nature of risk appetite Risk appetite statements Risk management and uncertainty Risk appetite and lifestyle decisions

21 Tolerate, treat, transfer and terminate
The 4T's of hazard response Tolerate risk Treat risk Transfer risk Terminate risk Project and strategic risk response

22 Risk control techniques
Hazard risk zones Types of controls Preventive controls Corrective controls Directive controls Detective controls

23 Control of selected hazard risks
Cost of risk controls Control of financial risks Control of infrastructure risks Control of reputational risks Control of marketplace risks Learning from controls

24 Insurance and risk transfer
Importance of insurance History of insurance Types of insurance cover Evaluation of insurance needs Purchase of insurance Captive insurance companies Case Studies:
Nationwide: Risk management and control Rank Group: Governance framework

Part Five: Risk and organizations
Learning outcomes for Part Five Part Five Further reading

25 Corporate governance model
Corporate governance OECD principles of corporate governance LSE corporate governance framework Corporate governance for a bank Corporate governance for a government agency Evaluation of board performance

26 Stakeholder expectations
Range of stakeholders Stakeholder dialogue Stakeholders and core processes Stakeholders and strategy Stakeholders and tactics Stakeholders and operations

27 Analysis of the business model
Simplified business model Core business processes Efficacious strategy Effective processes Efficient operations Reporting performance

28 Project risk management
Introduction to project risk management Development of project risk management Uncertainty in projects Project life cycle Opportunity in projects Project risk analysis and management

29 Operational risk management
Operational risk Definition of operational risk Basel II Measurement of operational risk Difficulties of measurement Developments in operational risk

30 Supply chain management
Importance of the supply chain Scope of the supply chain Strategic partnerships Joint ventures Outsourcing of operations Risk and contracts Case Studies:
BBC: Corporate governance framework Sainsbury: RM and internal controls

Part Six: Risk assurance and reporting
Learning outcomes for Part Six Part Six Further Reading

31 Evaluation of the control environment
Nature of internal control Purpose of internal control Control environment Features of the control environment CoCo framework of internal control Risk-aware culture

32 Activities of the internal audit function
Scope of internal audit Financial assertions Risk management and internal audit Risk management outputs Role of internal audit Management responsibilities

33 Risk assurance techniques
Audit committees Role of risk management Risk assurance Undertaking an internal audit Control risk self-assessment Benefits of risk assurance

34 Reporting on risk management
Risk documentation Sarbanes-Oxley Act of 2002
Risk reports by US companies Charities risk reporting Public sector risk reporting Government Report on National Security

35 Importance of corporate reputation
Reputation and corporate governance CSR and risk management CSR and reputational risk Supply chain and ethical trading CSR reporting Importance of reputation

36 Future of risk management
Review of benefits of risk management Steps to successful risk management Changing face of risk management Emerging risks Emerging trends in risk management Future developments Case Studies:
John Lewis: Corporate social responsibility (CSR)
Man Group: Risk and control reporting

Appendix A: Abbreviations and acronyms Appendix B: Glossary of terms Appendix C: Implementation guide Index