Enterprise Risk Management (Preview)

xvi ii Preface Committee of Sponsoring Organizations (COSO), and the International Standards Organization (ISO). However, Enterprise Risk Management is written in a language adapted for students. It does not require prior knowledge of risk management. It includes learning objectives, useful definitions, clear and concise explanations, practical examples, illustrations, review questions, and research assignments. It is adapted for courses at the mid- to senior levels of undergraduate management programs. It can also be used for courses at the post-graduate level. Finally, Enterprise Risk Management is a comprehensive reference manual that also benefits all managers and risk management professionals. Enterprise Risk Management , First Edition, has thirteen chapters divided in two parts. Part 1 – Concepts and Methods outlines the basics of risk management. It follows a progression of knowledge over six chapters that are logically sequenced to facilitate learning. By the end of part 1, students achieve an intermediate level of knowledge of risk management concepts and methods. Part 2 – Common Risk Areas examines risks applicable to every organization. It includes seven chapters that cover important mana- gement functions. In part 2, students learn the risks that commonly affect organizations, and how to manage those risks effectively using proven methods and techniques. The Benefits of Learning Risk Management Enterprise Risk Management is designed to help students and other readers discover risk management, and develop a risk mindset that they can apply to all management areas. It is an integrative textbook that makes students review and study critical management functions from a risk perspective. Students and other readers learn to apply a “risk lens” that becomes second nature. In doing so, they develop a sense of the main risks and risk management priorities applicable to important management activities. This powerful perspective will benefit students and other readers immensely throughout their career. Students and managers specializing in every management function benefit from learning risk management concepts and methods at the enterprise level. A good knowledge of the risks and risk management practices applicable to their functional specialty will impress prospective employers during interviews. Newly hired students and managers will demonstrate knowledge, skills and abilities to identify risks proactively, and propose effective risk management solutions. Students and managers will also understand how to work collaboratively with other management functions and business units to develop integrated risk management responses for the benefit of the organization as a whole. Universities and colleges recognize the importance and benefits of teaching risk management at the enterprise level. Risk management is an emerging discipline. It is popular with students and extremely relevant for employers. Until now, universities and colleges were held back with offering a course on risk management at the enterprise level, because no textbook was truly adapted for higher education. Enterprise Risk Management offers an interesting, useful, practical and comprehensive solution. This textbook is designed for higher education. It brings students and other readers to an intermediate level of knowledge in risk management. It is professionally written and easy to understand. Professors get the necessary materials such as presentation slides, lecture notes, and case studies that can be assigned. Exam-type questions are also available.