Using examples from companies such as Home Depot, Airbus, Boeing, and Nokia, as well as countries including Taiwan and Russia, "Enterprise Risk Management" takes an in-depth look at one of the hottest topics in business today. This title shows readers in charge of monitoring operational exposures in corporations, nonprofit organizations, and government agencies how they can best determine and balance opportunities against the possibilities of loss. Featuring enlightening case studies, interviews, and exercises, this essential book shows readers how they can implement ERM the right way at their organization.
I purchased this book to gain foundation knowledge in ERM and Corporate Risk Management. My greatest concern with these types of texts is that they provide tons of theory and little practical application. I selected this book because NC State has it as a suggested reading for its ERM Masters courses.
Bottomline, if you are looking for a book to give you the theory and then provide concrete practical application, this is the book you want. If you are looking for a starting point to get your hands around the major topis of ERM, this is the book you want. Basically, the text allowed me to diagram a future state ERM program for my company, and challenge potential consultants to work with us on the implementation project.
Very well written.
Fully managing enterprise risk means more than insuring against fire, floods and other hazards. Companies commonly have many uninsured exposures to loss from tougher competition, rapid technological change, financial instability and regulatory sanctions. That is why business leaders in growing numbers have adopted enterprise risk management (ERM), a flexible way to identify and respond to a corporation's total range of risks. Not all risks are all bad. Some are worth taking. Firms that practice enterprise risk management can minimize their potential peril while taking their best calculated risks, the ones most likely to increase sales and profits. Enterprise risk management will not eliminate risk. It did not prevent the failures of major financial institutions during the 2008 crisis. But author John J. Hampton cogently upholds the practice, noting that a disciplined, detailed approach is critical to making ERM actually work. He favors a customizable model of risk management - including a central monitoring function - that can work for a company of any size. getAbstract recommends this book to business leaders seeking a more reliable way to identify each meaningful risk, to distinguish good risks from bad ones and to cover their downsides as much as possible.
What I really like about this book is the snippets of case studies throughout. Many books talk about what risk managers did wrong, but Hampton talk more about what the risk managers have done right. There are many ways to do something wrong, but not many ways to do something right. This is what tipped the scale for me from 3 stars to 4 stars. What I have also appreciated is that Hampton spent time to write about what the organization should look like to manage risks.
Other than that the book is not contributing much more. It gives average views on the types of risk you could encounter and how to manage a risk database (the Riskonnect tool being developed), with the dependencies between the risks. I feel however that it fell short in the database and dependencies that have been presented. All the risks are treated qualitatively, and as exact/precise figures instead of uncertainties. Also the relationships between the risks are not properly formulated (using formulas or some kind logic such as boolean).
For the case studies alone I would recommend this book, but I would recommend other sources for the risk analysis portions.
Product Details :
- Hardcover: 320 pages
- Publisher: AMACOM (August 5, 2009)
- Language: English
- ISBN-10: 0814414923
- ISBN-13: 978-0814414927
- Product Dimensions: 1.2 x 9.2 x 6 inches
More Details about Fundamentals of Enterprise Risk Management: How Top Companies Assess Risk, Manage Exposure, and Seize Opportunity, 1st Edition
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