Enterprise Risk Management (Preview)

ix CONTENTS About the Author xv Preface xvii Acknowledgements xix PART 1 Concepts and Methods 1 CHAPTER 1 Risk Management Awareness 3 The Nature of Risk 4 The Evolution of Risk Management 12 Landmark Events and Reforms 16 Risk Management Guidance 24 Organizational Transformations 26 Benefits of ERM 34 Limitations of ERM 36 Emerging Professions 36 Review Questions 38 Research Assignments 38 Appendix 1A - Canadian Regulations 40 Appendix 1B - International Guidelines 41 CHAPTER 2 Risk Management Concepts 47 Definitions of Risk 48 Components of Risk 51 Risk Statements 54 Categories of Risk 54 Characteristics of Risks 60 Risk Assessment 64 Risk Culture 72 Risk Appetite 75 Risk Tolerance 80 Risk-Reward Relationships 82 Review Questions 84 Research Assignments 85 Appendix 2A - Other Assessment Criteria 86 CHAPTER 3 Risk Management Framework 91 The Concept of Frameworks 92 Risk Management Framework Components 93