Simple Tools and Techniques for Enterprise Risk Management, 2nd Edition

A business's ability to grow in the face of complex, unrelenting, ever-changing risk is the sin qua non of its competitive success. Unfortunately risk exposure is increasing unabated both in diversity and complexity at a breathtaking pace. In today's more interconnected business environment, where a lone trader can destroy, in a matter of hours, a reputation it took years to build, where the mere rumour of unsavoury accounting practices can send a company’s stock price plummeting at near-lightening speed, and where the unscrupulous practices of a handful of Wall Street bankers can bring the world financial system to its knees, the need for a methodical, highly dynamic and all-encompassing approach to Enterprise Risk Management has never been greater.

Representing a departure from traditional, compartmentalized risk management models, Enterprise Risk Management provides a fully integrated, “holistic” approach, in which risk management becomes an essential part of a business's organization, intrinsic to its strategic plan, structure and business processes.

In this updated and substantially expanded edition of Simple Tools and Techniques for Enterprise Risk Management, Robert Chapman provides a blueprint for designing, planning, implementing and managing an Enterprise Risk Management programme suitable for every type of corporation. Building from the ground up, he describes the major sources of internal and external risk and arms readers with a retinue of powerful tools and techniques for addressing each in a manner that can be tailored to a company's unique needs, goals and culture.

As clear, methodical and accessible as the Enterprise Risk Management model itself, the book explores the five key areas that must be considered when designing an effective Enterprise Risk Management programme:

• The relationship between corporate governance, internal control and risk management.
• The seven stages of the risk management process—including tools and techniques specific to each.
• The six primary sources of controllable internal risk, including financial, operational, technological, project management, business ethics and health and safety.
• The six main sources of external risk, namely: economic, environmental, legal, political, market, and social.
• Finding and working with a qualified risk practitioner, as considered from both the client’s and consultant’s perspectives.

Fully revised and updated to meet the needs of today's risk practitioner, this 2^nd Edition of Robert Chapman's acclaimed guide now includes chapters on the global financial crisis, project risk management, business ethics and health and safety, as well as updated chapters on US and UK corporate governance, providing an indispensable working resource for board members, executives, managers, and risk practitioners.