You are previewing The Complete Idiot's Guide® To Risk Management.
O'Reilly logo
The Complete Idiot's Guide® To Risk Management

Book Description

Manage the risk and maximize the reward!

Risk. It's what business is all about. The key to success is to anticipating and managing the risks that can impact business. The Complete Idiot's Guide® to Risk Management provides the key information necessary to manage business risk successfully.

*The basic categories of business risk

*How to indentify the specific factors that affect any particular business

*How to create practical risk models to plan ahead

*How to lessen the impact of risk events should they happen

*How to profit from strategic risk taking

Table of Contents

  1. Title Page
  2. Dedication
  3. Copyright Page
  4. Introduction
  5. Part 1 - What Is Risk Management?
    1. Chapter 1 - What Is Risk?
      1. Uncertain Outcomes
      2. How Do You Define Risk?
      3. Types of Risk
      4. Risk and Reward
      5. Company Pitfalls
    2. Chapter 2 - Why Manage Risk?
      1. What Kills Companies?
      2. Protect That Downside!
      3. Grow the Upside
      4. Manage Obligations
    3. Chapter 3 - Why Is Risk Management So Hard to Implement?
      1. Resistance to Change
      2. Not Invented Here
      3. Transparency Is Scary
      4. Do We Have to Do It?
      5. Finding and Managing the Right Data
      6. How Do We Know It’s Right?
      7. Other Tough Questions
      8. Stalling the Process
      9. Achieving a Balance
      10. Upper-Level Support
    4. Chapter 4 - Risk Management Guidelines
      1. Know Your Risks
      2. Know Your Appetite for Risk
      3. Use a Common Language
      4. Develop Capabilities Right for You
      5. Implement Simple Measures and Approaches
      6. Provide Clear Direction
      7. Expect the Unexpected
      8. Continuously Make Improvements
    5. Chapter 5 - Introducing the Risk Management Process
      1. What Are the Key Steps?
      2. Establishing the Context
      3. Dealing with Stakeholders
      4. Communicating with Stakeholders
      5. Things to Remember
  6. Part 2 - What Causes Risk?
    1. Chapter 6 - Categorizing Risk6
      1. Why Categorize Risk?
      2. Rules of Thumb
      3. Risk Categories and Subcategories
      4. Who Holds These Risks?
    2. Chapter 7 - Which Risks Are Lurking in Your Shop?
      1. Know Your Business
      2. Know Your Organization
      3. Rolling Up Your Sleeves
  7. Part 3 - Assessing Risk
    1. Chapter 8 - How Do You Measure Up?
      1. Why Measure Risk?
      2. Using Risk Measures
      3. Key Measurement Concepts
      4. What to Measure
    2. Chapter 9 - Forecasting Risks
      1. Comparing Risks
      2. Working the Comparisons
      3. Implementation
      4. What Are the Odds?
      5. Analyzing What Happened
      6. Leading and Lagging Indicators
    3. Chapter 10 - Impact!
      1. Expected Loss
      2. Unexpected Loss
      3. Measuring Groups of Risks
      4. Conducting Stress Tests
      5. Converting Measures to Money
      6. Analyzing Risk and Reward
  8. Part 4 - Managing and Mitigating Risk
    1. Chapter 11 - Treating Risk
      1. Initial Considerations
      2. Methods for Treating Risk
      3. Choosing the Right Methods for Your Risks
    2. Chapter 12 - Reducing the Likelihood of Risk Events
      1. Limiting Your Exposure to Risks
      2. Triggers and Controls
      3. “Outsourcing” Your Risks
      4. Working with Your People
    3. Chapter 13 - Reducing the Impact
      1. Contingency Plans
      2. Buffers and Reserves
      3. Hedging
      4. Diversification
      5. Insurance
  9. Part 5 - Deep Dive: Focused Solutions
    1. Chapter 14 - Measuring and Managing Strategic Risk
      1. Measuring and Analyzing Strategic Risk
      2. Managing and Mitigating Strategic Risk
      3. Pitfalls in Managing Strategic Risks
    2. Chapter 15 - Measuring and Managing Financial Risks
      1. Measuring and Analyzing Financial Risk
      2. Managing and Mitigating Financial Risks
      3. Pitfalls in Managing Financial Risk
    3. Chapter 16 - Measuring and Managing Operational Risks
      1. Measuring and Analyzing Operational Risk
      2. Managing and Mitigating Operational Risks
      3. Building Buffers
  10. Part 6 - Integration
    1. Chapter 17 - Inviting and Integrating Risk
      1. Where to Build In Risk Approaches
      2. Choosing What’s Right for Your Business
    2. Chapter 18 - Integrating Risk into Business Governance
      1. Role of Management
      2. Stakeholder Management
      3. Customer Management
      4. Your Policy Framework
      5. Meshing Risk Culture and Your Business Values
    3. Chapter 19 - Integrating Risk into Your Organization
      1. Building the Framework
      2. Risk Management Is Everyone’s Business
      3. Four Lines of Defense
      4. Who Are Your Risk Managers?
      5. Managing Risk Through Employee Compensation
    4. Chapter 20 - Building Risk into the Business Process
      1. Three Keys to Integration
      2. Develop a Business Rhythm
      3. Keep Your Finger on the Pulse
      4. Reporting
    5. Chapter 21 - Your Risk Appetite
      1. The Broad Concepts
      2. The Risk Appetite Statement
      3. How Hungry Are You for Risk?
      4. Key Questions to Ask
      5. Building Your Risk Appetite Statement
      6. Putting It to Work
    6. Chapter 22 - Profiting from Risk
      1. Risk and Reward Day to Day
      2. Developing and Targeting Products
      3. Using Risk Information to Target Customers
      4. Considering Risk in Pricing
      5. Managing Customers
      6. Creating Better Processes
    7. Chapter 23 - Lessons Learned
      1. Case Study: Know Your Business
      2. Case Study: Keep It Simple
      3. Case Study: Using the Right Yardstick
      4. It’s a Wrap
  11. Appendix A - Glossary
  12. Appendix B - Risk Categories Cheat Sheet
    1. I. Strategic/Business Risks
    2. II. Financial Risks
    3. III. Operational Risks
  13. Appendix C - Simple Risk Equations
    1. Severity Calculation
    2. Alternative Severity Estimate
    3. Expected Loss
    4. Unexpected Loss
    5. Economic Profit
    6. Risk-Adjusted Return on Capital
  14. Appendix D - Risk Management Resources
    1. General Reference
    2. Trade Periodicals and Official Papers
    3. Official Risk Management Guidelines
    4. Risk Management Associations and Websites
    5. Regulatory Guidance and Descriptions
  15. Index