CORPORATE RISK MANAGEMENT, SECOND EDITION

Transcription

1 CORPORATE RISK MANAGEMENT, SECOND EDITION 1 Introduction. 1.1 Introduction. 1.2 Why Managing Risk is Important. 1.3 General Definition of Risk Management. 1.4 Background and Structure. 1.5 Aim. 1.6 Scope of the Book. 2 The Concept of Risk and Uncertainty and the Sources and Types of Risk. 2.1 Introduction. 2.2 Background. 2.3 Risk and Uncertainty: Basic Concepts and General Principles. 2.4 The Origin of Risks. 2.5 Uncertainties. 2.6 Sources of Risk. 2.7 Typical Risks. 2.8 Perceptions of Risk. 2.9 Stakeholders in an Investment Summary. 3 The Evolution of Risk Management and the Risk Management Process. 3.1 Introduction. 3.2 The Evolution of Risk Management. 3.3 Risk Management. 3.4 The Risk Management Process Identification, Analysis and Response. 3.5 Embedding Risk Management into Your Organisation. 3.6 Risk Management Plan. 3.7 Executive Responsibility and Risk. 3.8 Summary.

2 4 Risk Management Tools and Techniques. 4.1 Introduction. 4.2 Definitions. 4.3 Risk Analysis Techniques. 4.4 Qualitative Techniques in Risk Management. 4.5 Quantitative Techniques in Risk Management. 4.6 Quantitative and Qualitative Risk Assessments. 4.7 Value Management. 4.8 Other Risk Management Techniques. 4.9 Country Risk Analysis Summary. 5 Financing Projects, their Risks and Risk Modelling. 5.1 Introduction. 5.2 Corporate Finance. 5.3 Project Finance. 5.4 Financial Instruments. 5.5 Debt Mezzanine Finance Instruments. 5.7 Equity. 5.8 Financial Risks. 5.9 Non-Financial Risks Affecting Project Finance Managing Financial Risks Risk Modelling Types of Risk Software Summary. 6 Portfolio Analysis and Cash Flows. 6.1 Introduction. 6.2 Selecting a Portfolio Strategy.

3 6.3 Constructing the Portfolio. 6.4 Portfolio of Cash Flows. 6.5 The Boston Matrix. 6.6 Scenario Analysis. 6.7 Diversification. 6.8 Portfolio Risk Management. 6.9 Cross-Collateralisation Cash Flows An Example of Portfolio Modelling Summary. 7 Risk Management at Corporate Level. 7.1 Introduction. 7.2 Definitions. 7.3 The History of the Corporation. 7.4 Corporate Structure. 7.5 Corporate Management. 7.6 Corporate Functions. 7.7 Corporate Strategy. 7.8 Recognising Risks. 7.9 Specific Risks at Corporate Level The Chief Risk Officer How Risks are Assessed at Corporate Level Corporate Risk Strategy Corporate Risk: An Overview The Future of Corporate Risk Summary. 8 Risk Management at Strategic Business Level. 8.1 Introduction.

4 8.2 Definitions. 8.3 Business Formation. 8.4 Strategic Business Units. 8.5 Business Strategy. 8.6 Strategic Planning. 8.7 Recognising Risks. 8.8 Portfolio Theory. 8.9 Programme Management Business Risk Strategy Tools at Strategic Business Unit Level Strategic Business Risk: An Overview Summary. 9 Risk Management at Project Level. 9.1 Introduction. 9.2 The History of Project Management. 9.3 Definitions. 9.4 Project Management Functions. 9.5 Project Strategy Analysis. 9.6 Why Project Risk Management is Used. 9.7 Recognising Risks. 9.8 Project Risk Strategy. 9.9 The Future of Project Risk Management Summary. 10 Risk Management at Corporate, Strategic Business and Project Levels Introduction Risk Management The Risk Management Process 10.4 Common Approaches to Risk Management by Organisations.

5 10.5 Model for Risk Management at Corporate, Strategic Business and Project Levels Summary. 11 Risk Management and Corporate Governance Introduction Corporate Governance Corporate Governance Approach in France Corporate Governance Approach by the European Commission Corporate Governance and Internal Control Summary. 12 Risk Management and Basel II Introduction Risk Rating System (RRS) Borrower Risk Rating System and Probability of Default Risk Rating and Provisioning Risk Rating and Pricing Methodology of RRS and Risk Pricing Grid Analysis or Standardising the Risk Analysis Regulation in Operational Risk Management Summary. 13 Quality Related Risks Introduction Defining Quality Risks Standardisation ISO 9000 Series Quality Risks in Manufacturing Products Quality Risks in Services Quality Control and Approaches to Minimise Product Quality Risks Summary.

6 14 CASE STUDY 1: Risks in Projects in the Pharmaceutical Industry Introduction The Pharmaceutical Industry Filing with the Regulatory Authority Identification and Response to Risks Encountered in DDPs Summary. 15 CASE STUDY 2: Risk Modelling of Supply and Off-take Contracts in a Petroleum Refinery Procured through Project Finance Introduction Financing a Refinery Project Bundling Crude Oil Contracts Assessing a Case Study Bundle Solutions After Risk Management Summary. 16 CASE STUDY 3: Development of Risk Registers at Corporate, Strategic Business Unit and Project levels and a Risk Statement Introduction Levels of Risk Assessment Amalgamation and Analysis of Risks Identified The Project: Baggage Handling Facility Risk Statement Summary.

7 17 CASE STUDY 4: Development of a Typical Risk Statement to Shareholders Introduction UUU Overview and Risk Register Corporate Risk Register Strategic Business Units Risk Register Project Level Risk Register Risk Statement to Shareholders Summary. References. Index.