SIMPLE TOOLS AND TECHNIQUES FOR ENTERPRISE RISK MANAGEMENT

Transcription

1 SIMPLE TOOLS AND TECHNIQUES FOR ENTERPRISE RISK MANAGEMENT List of figures. Preface. Acknowledgements. About the author. PART I: ENTERPRISE RISK MANAGEMENT IN CONTEXT. 1 Introduction. 1.1 Approach to risk management. 1.2 Business growth through risk taking. 1.3 Risk and opportunity. 1.4 The role of the board. 1.5 Primary business objective (or goal). 1.6 What is enterprise risk management (ERM). 1.7 Benefits of ERM. 1.8 Framework. 1.9 Summary References. 2 Developments in Corporate Governance in the UK. 2.1 Investor unrest. 2.2 The problem of agency. 2.3 Cadbury Committee. 2.4 The Greenbury Study. 2.5 The Hampel Committee and the Combined Code of Smith guidance on audit committees. 2.7 Higgs. 2.8 Tyson. 2.9 Combined Code on Corporate Governance The comply or explain regime Definition of corporate governance Formation of companies The Financial Services and Markets Act The London Stock Exchange Summary References. 3 Developments in Corporate Governance in the US and Canada. 3.1 Sarbanes-Oxley Act Canada. 3.3 Summary. 3.4 References. 4 Internal Control and Risk Management. 4.1 The composition of internal control. 4.2 Risk as a subset of internal control. 4.3 Allocation of responsibility. 4.4 The context of internal control and risk management. 4.5 Internal control and risk management.

2 4.6 Embedding internal control and risk management. 4.7 Summary. 4.8 References. 5 Developments in Risk Management in the Public Sector. 5.1 Responsibility for risk management in government. 5.2 Risk management publications. 5.3 Successful IT. 5.4 Supporting innovation. 5.5 The Orange Book. 5.6 Audit Commission. 5.7 CIPFA/SOLACE Corporate Governance. 5.8 M or. 5.9 DEFRA Strategy Unit Report Risk and value management The Green Book CIPFA internal control Managing risks to improve public services The Orange Book (revised) Summary References. PART II: THE APPOINTMENT. 6 Introduction. 6.1 Change process from the client perspective. 6.2 Selection of consultants. 6.3 Summary. 6.4 References. 7 Interview with the Client. 7.1 First impressions/contact. 7.2 Client focus. 7.3 Unique selling point. 7.4 Past experiences. 7.5 Client interview. 7.6 Assignment methodology. 7.7 Change management. 7.8 Sustainable change. 7.9 Summary References.

3 8 Proposal. 8.1 Introduction. 8.2 Proposal preparation. 8.3 Proposal writing. 8.4 Approach. 8.5 Proposal. 8.6 Client responsibilities. 8.7 Remuneration. 8.8 Summary. 8.9 Reference. 9 Implementation. 9.1 Written statement of project implementation. 9.2 Management. 9.3 Customer delight. 9.4 Summary. 9.5 References. PART III: THE RISK MANAGEMENT PROCESS. 10 Analysing the Business: Stage Process Process goal and sub-goals Process definition Process inputs Process outputs Process controls (constraints) Process mechanisms (enablers) Process activities Summary References. 11 Risk Identification: Stage Process Process goal and sub-goals Process definition Process inputs Process outputs Process controls (constraints) Process mechanisms (enablers) Process activities Summary References. 12 Risk Assessment: Stage Process Process goals and sub-goals Process definition Process inputs Process outputs.

4 12.6 Process controls (constraints) Process mechanisms (enablers) Probability Process activities Summary References. 13 Risk Evaluation: Stage Process Process goals and sub-goals Process definition Process inputs Process outputs Process controls (constraints) Process mechanisms (enablers) Process activities Summary References. 14 Risk Planning: Stage Process Process goals and sub-goals Process definition Process inputs Process outputs Process controls (constraints) Process mechanisms Process activities Risk appetite Risk response strategies Summary References. 15 Risk Management: Stage Process Process goals and sub-goals Process definition Process inputs Process outputs Process controls (constraints) Process mechanisms Process activities Summary Reference. PART IV: INTERNAL INFLUENCES MICRO FACTORS. 16 Financial Risk Management Definition of financial risk Scope of financial risk Benefits of financial risk Management Implementation of financial risk management.

5 16.5 Liquidity risk Credit risk Borrowing Currency risk Funding risk Foreign investment risk Derivatives Summary References. 17 Operational Risk Management Definition of operational risk Scope of operational risk Benefits of operational risk Implementation of operational risk Strategy People Processes and systems External events Outsourcing Measurement Mitigation Summary References. 18 Technological Risk Definition of technology risk Scope of technology risk Benefits of technology risk management Implementation of technology risk management Primary technology types Responding to technology risk Summary References. PART V: EXTERNAL INFLUENCES MACRO FACTORS. 19 Economic Risk Definition of economic risk Scope of economic risk Benefits of economic risk management Implementation of economic risk management Microeconomics and macroeconomics Macroeconomics Government policy Aggregate demand Aggregate supply Employment levels Inflation Interest rate risk House prices International trade and protection Currency risk.

6 19.16 Summary References. 20 Environmental Risk Definition of environmental risk Scope of environmental risk Benefits of environmental risk management Implementation of environmental risk management Energy sources Use of resources Pollution Global warming Response to global warming Stimulation to environmental considerations Environmental sustainability Summary References. 21 Legal Risk Definition of legal risk Scope of legal risk Benefits of legal risk management Implementation of legal risk management Business Law Companies Intellectual property Employment Law Contracts Criminal liability in business Computer misuse Summary References. 22 Political Risk Definition of political risk Scope of political risk Benefits of political risk management Implementation of political risk management Zonis and Wilkin political risk framework Contracts Transition economies of Europe UK Government fiscal policy Pressure groups Terrorism and blackmail Responding to political risk Summary References. 23 Market Risk Definition of market risk Scope of market risk Benefits of market risk management.

7 23.4 Implementation of market risk management Market structure Product lifecycle stage Alternative strategic directions Acquisition Game theory Price elasticity/sensitivity Distribution strength Measurement Risk response planning Summary References. 24 Social Risk Definition of social risk Scope of social risk Benefits of social risk management Implementation of social risk management Education Population movements demographic changes Socio-cultural patterns and trends Crime Key facts Lifestyles and social attitudes Summary. Appendix 1: Successful IT: Modernising Government in Action. Appendix 2: Sources of Risk. Appendix 3: DEFRA Risk Management Strategy. Appendix 4: Risk: Improving Government s Capability to Handle Risk and Uncertainty. Appendix 5: Financial Ratios. Appendix 6: Risk Maturity Models. Appendix 7: SWOT Analysis. Appendix 8: PEST Analysis. Appendix 9: VRIO Analysis. Appendix 10: Value Chain Analysis. Appendix 11: Resource Audit. Appendix 12: Change Management. Appendix 13: Industry Breakpoints. Appendix 14: Probability. Index.