Corporate Value of ENTERPRISE RISK MANAGEMENT
The Next Step in Business Management
"I have read nearly every book related to this topic, and I heartily recommend this one. This could well be the only ERM book you will ever need."
Dave Ingram, CERA
Senior Vice President, Willis Re
Former leader of Standard & Poor′s insurance ERM evaluations
"An excellent book on ERM! This book is highly accessible to a wide range of professionals, from technical personnel to senior executives to board members. Its principles–based approach and excellent real–world examples make it a highly practical guide for those who want to understand ERM without getting lost in technical jargon."
Chief Risk Strategist, Bloomberg
"Finally, a comprehensive guide to implementing ERM. This book offers an advanced but practical solution to successfully implementing ERM based on a disciplined, measured approach. In my nearly two decades as a board member, chief risk officer, and chief audit executive, I′ve been presented with many risk management frameworks, but this is the best I have seen."
Leslie Bauer, CPA
Vice President and Chief Risk Officer, ARC
"A firm′s value is based on its risk–adjusted return. The traditional focus on return (P&L) addresses only half the picture, at best; ERM completes it. Segal, one of the world′s leading authorities on managing risk, provides a comprehensive and practical guide to ERM strategy and implementation. It is essential reading for anyone concerned with managing risk and return."
Garrett Van Ryzin, PhD, SM, BSEE
Chair of Decision, Risk, and Operations Division
Columbia Business School
"Segal′s value–based ERM approach gives readers a truly integrated road map for risk management. It employs practical and holistic techniques for improving how risk and return are considered, evaluated, and managed in business decision making, from day–to–day decisions to strategic planning."
Rob Pollock, FSA
President and Chief Executive Officer, Assurant
Part I: ERM Basics and Infrastructure.
Chapter 1: Introduction.
Evolution of ERM.
Corporate Accounting Fraud.
Rating Agency Scrutiny.
Challenges to ERM.
Chapter 2: Defining ERM.
Definition of Risk.
Definition of ERM.
Chapter 3: ERM Framework.
Value–Based ERM Framework.
Challenges of Traditional ERM Frameworks.
Value–Based ERM Framework.
Overcoming the Challenges with a Value–Based ERM Framework.
Part II: ERM Process Cycle.
Chapter 4: Risk Identification.
Components of Risk Identification.
Five Keys to Successful Risk Identification.
Risk Categorization and Definition.
Qualitative Risk Assessment.
Emerging Risk Identification.
Chapter 5: Risk Quantification.
Components of Risk Quantification.
Calculate Baseline Company Value.
Quantify Individual Risk Exposures.
Quantify Enterprise Risk Exposure.
Chapter 6: Risk Decision–Making.
Defining Risk Appetite and Risk Limits.
Integrating ERM into Decision–Making.
Chapter 7: Risk Messaging.
Internal Risk Messaging.
External Risk Messaging.
Part III: Risk Governance and Other Topics.
Chapter 8: Risk Governance.
Focusing on Common Themes.
Components of Risk Governance.
Roles and Responsibilities.
Policies and Procedures.
Chapter 9: Financial Crisis Case Study.
Summary of the Financial Crisis.
Evaluating Bank Risk Management Practices.
Chapter 10: ERM for Non–Corporate Entities.
Generalizing the Value–Based ERM Approach.
Complexities of Objectives–Based ERM.
Examples of NCEs.
About the Author.