"Managing enterprise risk is the responsibility of all managers. This book will assist you in understanding this once complex subject and its impact on you achieving your strategic objectives." Steven Ing, Executive Director, SAS Professional Services, Asia Pacific
"Monahan presents a focused methodology that forces managers to confront the real risks their enterprises face. He brings his long experience to the creation of a practical tool that will change the practice of enterprise risk management, whatever the nature of the business. Exceptionally clearly written." Professor James Franklin, University of New South Wales, author of The Science of Conjecture
"Monahan suggests a practical application to the established VaR concept. Anyone interested in the application of risk management as a strategic tool would find this book an interesting read. This book should be read by anyone interested in risk management as a strategic, value–adding tool." Ming Soong Tham, Head of Risk Management, United Overseas Bank Ltd.
"Definitely not banal. Greg′s book has been written for the progressive thinker someone who is willing to follow a logical argument to its natural conclusion even when those conclusions may challenge the conventional wisdom." Ali Samad–Khan, President, OpRisk Advisory
An essential primer for achieving your company′s strategic objectives through enterprise risk management (ERM)
Enterprise Risk Management: A Methodology for Achieving Strategic Objectives enables you to leverage ERM methodology in your organization by putting author and ERM authority Gregory Monahan′s SOAR methodology to work.
Thought–provoking and no–nonsense in style, Enterprise Risk Management: A Methodology for Achieving Strategic Objectives focuses on the challenges your organization may face in managing the risks associated with achieving strategic objectives. This important book shows you how you can best use ERM and SOAR to meet your company′s business goals and empower your company to go from "stuck" to "competitive."
Chapter 1. Defining Enterprise Risk Management.
Enterprise Risk management.
Chapter 2. Strategic Objectives .
Note on the Interdependence of objectives.
Chapter 3. At–Risk Concept.
A very Simple Distribution.
A Slightly More Interesting Distribution.
Location of the Distribution.
Basic Statistical Measures.
Chapter 4. SOAR (the Methodology): Strategic Objectives at Risk.
SOAR Methodology Components.
Chapter 5. SOAR (the Process).
Chapter 6. Set Metrics for Defined Strategic Objectives.
Classes of metrics.
Examples of Metrics.
Setting Target Values for Metrics.
Chapter 7. Observe Metric Values.
Recording Observations of Metrics.
Frequency of Observation.
Chapter 8. Analyze Movements in Metrics.
Conducting the Analysis.
Validating the Data.
Validating Metric Choice.
Chapter 9. React to the Metric Analysis.
Record the Rationale for Your Reaction.
Simple Task of Reacting According to the Measures.
Difficult Task of Managing Human Behaviors.
Chapter 10. SOAR Dashboard.
SOAR Black Box Recorder.
Chapter 11. Existing Enterprise Risk Management Approaches.
Chapter 12. Regulation and Compliance.
AS/NZS 4360:2004: Risk Management.
Organizational Risk Management Policy.
Chapter 13. Application of the Concept of Shifting the Distribution .
Bank Treasury Operations.
Humans in Daily Life.
One Other Example.
Chapter 14. Implementing the SOAR Methodology.
Resourcing the Enterprise Risk Management Office.
Applying the SOAR Process.
Chapter 15. SOAR in Action Example.
Step 1. Set (Metrics).
Step 2. Observe (End–of–Year Metric Values).
Step 3. Analyze (Movements in Metric Values).
Step 4. React (to the End–of–Year Analysis).
Appendix: SOAR Methodology FAQ.