Synopses & Reviews
Overcome ERM implementation challenges by taking cues from leading global organizationsImplementing Enterprise Risk Management is a practical guide to establishing an effective ERM system by applying best practices at a granular level. Case studies of leading organizations including Lehman Brothers, General Motors, and Saudi Aramco illustrate the real-world implementation of ERM on a macro level, while also addressing how ERM informs the response to specific incidents. Readers will learn how top companies are effectively constructing ERM systems to positively drive financial growth and manage operational and outside risk factors. By addressing the challenges of adopting ERM in large organizations with different functioning silos and well-established processes, this guide provides expert insight into fitting the new framework into cultures resistant to change.
Enterprise risk management covers accidental losses as well as financial, strategic, operational, and other risks. Recent economic and financial market volatility has fueled a heightened interest in ERM, and regulators and investors have begun to scrutinize companies' risk-management policies and procedures. Implementing Enterprise Risk Management provides clear, demonstrative instruction on establishing a strong, effective system. Readers will learn to:
- Put the right people in the right places to build a strong ERM framework
- Establish an ERM system in the face of cultural, logistical, and historical challenges
- Create a common language and reporting system for communicating key risk indicators
- Create a risk-aware culture without discouraging beneficial risk-taking behaviors
ERM is a complex endeavor, requiring expert planning, organization, and leadership, with the goal of steering a company's activities in a direction that minimizes the effects of risk on financial value and performance. Corporate boards are increasingly required to review and report on the adequacy of ERM in the organizations they administer, and Implementing Enterprise Risk Management offers operative guidance for creating a program that will pass muster.
Synopsis
Implementing Enterprise Risk Management provides professional risk managers and educators with in-depth case studies of how organizations are implementing the evolving business science of ERM on a granular level. Authored by thought leaders in the field, the book is a useful companion to a popular Kolb Series volume, Enterprise Risk Management: Today’s Leading Research and Best Practices for Tomorrow’s Executives (Wiley, 2010). The book profiles a variety of organizations, focusing on the macro implementation of ERM, while also addressing how ERM informs the response to specific incidents. Organizations profiled include Lehman Brothers, General Motors, and Saudi Aramco. Surveys have shown that there is a critical need for more detailed “real world” applications on ERM. The book answers that need by addressing how organizations implement ERM in the face of the cultural, logistical, historical challenges. Moreover, it addresses how organizations bring various “silos” together by creating a common reporting system and language regarding ERM. The case studies will include questions at the end of the case and teaching notes will be made available for those adopting the cases in higher education courses and executive education.