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Corporate Value of Enterprise Risk Management: The Next Step in Business Management

Book Description

The ultimate guide to maximizing shareholder value through ERM

The first book to introduce an emerging approach synthesizing ERM and value-based management, Corporate Value of Enterprise Risk Management clarifies ERM as a strategic business management approach that enhances strategic planning and other decision-making processes.

  • A hot topic in the wake of a series of corporate scandals as well as the financial crisis

  • Looks at ERM as a way to deliver on the promise of balancing risk and return

  • A practical guide for corporate Chief Risk Officers (CROs) and other business professionals seeking to successfully implement ERM

ERM is here to stay. Sharing his unique insights and experiences as a recognized global thought leader in this field, author Sim Segal offers world-class guidance on how your business can successfully implement ERM to protect and increase shareholder value.

Table of Contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Foreword
  5. Preface
    1. Purpose of the Book
    2. Intended Audience
    3. Summary of the Contents
  6. Acknowledgments
  7. Part I: Basic ERM Infrastructure
    1. Chapter 1: Introduction
      1. Evolution of ERM
      2. Basel Accords
      3. September 11th
      4. Corporate Accounting Fraud
      5. Hurricane Katrina
      6. Rating Agency Scrutiny
      7. Financial Crisis
      8. Rare Events
      9. Long-Term Trends
      10. Challenges to ERM
      11. Summary
    2. Chapter 2: Defining ERM
      1. Definition of Risk
      2. Definition of ERM
      3. Distributable Cash Flow
      4. Summary
    3. Chapter 3: ERM Framework
      1. Value-Based ERM Framework
      2. Challenges of Traditional ERM Frameworks
      3. Value-Based ERM Framework
      4. Overcoming the Challenges by Using a Value-Based ERM Framework
      5. Summary
  8. Part II: ERM Process Cycle
    1. Chapter 4: Risk Identification
      1. Components of Risk Identification
      2. Five Keys to Successful Risk Identification
      3. Risk Categorization and Definition
      4. Qualitative Risk Assessment
      5. Emerging Risk Identification
      6. Killer Risks
      7. Summary
    2. Chapter 5: Risk Quantification
      1. Practical Modeling
      2. Components of Risk Quantification
      3. Calculate Baseline Company Value
      4. Quantify Individual Risk Exposures
      5. Quantify Enterprise Risk Exposure
      6. Summary
    3. Chapter 6: Risk Decision Making
      1. Defining Risk Appetite and Risk Limits
      2. Attribution Analysis
      3. Integrating ERM into Decision Making
      4. Summary
    4. Chapter 7: Risk Messaging
      1. Internal Risk Messaging
      2. External Risk Messaging
      3. Summary
  9. Part III: Risk Governance and Other Topics
    1. Chapter 8: Risk Governance
      1. Focusing on Common Themes
      2. Components of Risk Governance
      3. Roles and Responsibilities
      4. Organizational Structure
      5. Policies and Procedures
      6. Summary
    2. Chapter 9: Financial Crisis Case Study
      1. Summary of the Financial Crisis
      2. Evaluating Bank Risk Management Practices
      3. Summary
    3. Chapter 10: ERM for Non-Corporate Entities
      1. Generalizing the Value-Based ERM Approach
      2. Complexities of Objectives-Based ERM
      3. Examples of NCEs
      4. Summary
      5. Conclusion
  10. Glossary
  11. About the Author
  12. Index