{"product_id":"enterprise-risk-management-isbn-9781118413616","title":"Enterprise Risk Management","description":"\u003cb\u003eA fully revised second edition focused on the best practices of enterprise risk management\u003c\/b\u003e  \u003cp\u003eSince the first edition of \u003ci\u003eEnterprise Risk Management: From Incentives to Controls\u003c\/i\u003e was published a decade ago, much has changed in the worlds of business and finance. That's why James Lam has returned with a new edition of this essential guide. Written to reflect today's dynamic market conditions, the \u003ci\u003eSecond Edition\u003c\/i\u003e of \u003ci\u003eEnterprise Risk Management: From Incentives to Controls\u003c\/i\u003e clearly puts this discipline in perspective.\u003c\/p\u003e \u003cp\u003eEngaging and informative, it skillfully examines both the art as well as the science of effective enterprise risk management practices. Along the way, it addresses the key concepts, processes, and tools underlying risk management, and lays out clear strategies to manage what is often a highly complex issue.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eOffers in-depth insights, practical advice, and real-world case studies that explore the various aspects of ERM\u003c\/li\u003e \u003cli\u003eBased on risk management expert James Lam's thirty years of experience in this field\u003c\/li\u003e \u003cli\u003eDiscusses how a company should strive for balance between risk and return\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eFailure to properly manage risk continues to plague corporations around the world. Don't let it hurt your organization. Pick up the \u003ci\u003eSecond Edition\u003c\/i\u003e of \u003ci\u003eEnterprise Risk Management: From Incentives to Controls\u003c\/i\u003e and learn how to meet the enterprise-wide risk management challenge head on, and succeed.\u003c\/p\u003e \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003eAcknowledgments xvii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eSection One Risk Mangement in Context 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Introduction 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Benefits of Risk Management 6\u003c\/p\u003e \u003cp\u003eIntegration Adds Value 9\u003c\/p\u003e \u003cp\u003eCautionary Tales 12\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Lessons Learned 21\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLesson #1: Know Your Business 23\u003c\/p\u003e \u003cp\u003eLesson #2: Establish Checks and Balances 24\u003c\/p\u003e \u003cp\u003eLesson #3: Set Limits and Boundaries 25\u003c\/p\u003e \u003cp\u003eLesson #4: Keep Your Eye on the Cash 26\u003c\/p\u003e \u003cp\u003eLesson #5: Use the Right Yardstick 27\u003c\/p\u003e \u003cp\u003eLesson #6: Pay for the Performance You Want 27\u003c\/p\u003e \u003cp\u003eLesson #7: Balance the Yin and the Yang 28\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Concepts and Processes 31\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRisk Concepts 32\u003c\/p\u003e \u003cp\u003eRisk Processes 36\u003c\/p\u003e \u003cp\u003eRisk Awareness 38\u003c\/p\u003e \u003cp\u003eRisk Measurement 40\u003c\/p\u003e \u003cp\u003eRisk Control 42\u003c\/p\u003e \u003cp\u003eRisk is a Bell Curve 48\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 What is ERM? 51\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eERM Definitions 53\u003c\/p\u003e \u003cp\u003eThe Benefits of ERM 53\u003c\/p\u003e \u003cp\u003eThe Chief Risk Officer 57\u003c\/p\u003e \u003cp\u003eComponents of ERM 61\u003c\/p\u003e \u003cp\u003e\u003cb\u003eSection Two The Enterprise Risk Management Framework 67\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Corporate Governance 69\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCodes of Conduct 71\u003c\/p\u003e \u003cp\u003eBest Practices 72\u003c\/p\u003e \u003cp\u003eLinking Corporate Governance and ERM 77\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Line Management 83\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Relationship Between Line and Risk Functions 84\u003c\/p\u003e \u003cp\u003eKey Challenges 89\u003c\/p\u003e \u003cp\u003eBest Practices 92\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Portfolio Management 99\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Theory of Active Portfolio Management 100\u003c\/p\u003e \u003cp\u003eBenefits of Active Portfolio Management 102\u003c\/p\u003e \u003cp\u003ePractical Applications of Portfolio Management 105\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Risk Transfer 111\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Brief History of ART 112\u003c\/p\u003e \u003cp\u003eAdvantages of ART 116\u003c\/p\u003e \u003cp\u003ePitfalls of ART 119\u003c\/p\u003e \u003cp\u003eA Look to the Future 122\u003c\/p\u003e \u003cp\u003eCase Study: Honeywell 124\u003c\/p\u003e \u003cp\u003eCase Study: Barclays 124\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Risk Analytics 127\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRisk Control Analytics 128\u003c\/p\u003e \u003cp\u003eRisk Optimization Analytics 133\u003c\/p\u003e \u003cp\u003eMarket Risk Analytics 135\u003c\/p\u003e \u003cp\u003eCredit Risk Analytics 138\u003c\/p\u003e \u003cp\u003eCredit Portfolio Models 141\u003c\/p\u003e \u003cp\u003eOperational Risk Analytics 142\u003c\/p\u003e \u003cp\u003eGRC Systems 143\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Data and Technology 147\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEarly Systems 147\u003c\/p\u003e \u003cp\u003eData Management 149\u003c\/p\u003e \u003cp\u003eInterface Building 151\u003c\/p\u003e \u003cp\u003eMiddleware 152\u003c\/p\u003e \u003cp\u003eDistributed Architectures 153\u003c\/p\u003e \u003cp\u003eKey Factors for a Successful Implementation 154\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Stakeholder Management 157\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEmployees 158\u003c\/p\u003e \u003cp\u003eCustomers 161\u003c\/p\u003e \u003cp\u003eRegulators 164\u003c\/p\u003e \u003cp\u003eRating Agencies 166\u003c\/p\u003e \u003cp\u003eShareholder Service Providers 167\u003c\/p\u003e \u003cp\u003eBusiness Partners 169\u003c\/p\u003e \u003cp\u003e\u003cb\u003eSection Three Risk Management Applications 173\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Credit Risk Management 175\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eKey Credit Risk Concepts 176\u003c\/p\u003e \u003cp\u003eThe Credit Risk Management Process 184\u003c\/p\u003e \u003cp\u003eBasel Requirements 192\u003c\/p\u003e \u003cp\u003eBest Practices in Credit Risk Management 196\u003c\/p\u003e \u003cp\u003eCase Study: Export Development Corporation (EDC) 200\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Market Risk Management 209\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTypes of Market Risk 210\u003c\/p\u003e \u003cp\u003eMarket Risk Measurement 211\u003c\/p\u003e \u003cp\u003eMarket Risk Management 224\u003c\/p\u003e \u003cp\u003eBest Practices in Market Risk Management 227\u003c\/p\u003e \u003cp\u003eCase Study: Market Risk Management at Chase 230\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Operational Risk Management 237\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOperational Risk—Definition and Scope 240\u003c\/p\u003e \u003cp\u003eThe Operational Risk Management Process 246\u003c\/p\u003e \u003cp\u003eBest Practice in Operational Risk Management 257\u003c\/p\u003e \u003cp\u003eEmerging IT Risks 259\u003c\/p\u003e \u003cp\u003eCase Study: Heller Financial 264\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 Business Applications 271\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStage I: Minimizing the Downside 271\u003c\/p\u003e \u003cp\u003eStage II: Managing Uncertainty 272\u003c\/p\u003e \u003cp\u003eStage III: Performance Optimization 274\u003c\/p\u003e \u003cp\u003eThe Further Evolution of Risk Management 275\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 16 Financial Institutions 277\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIndustry Trends 278\u003c\/p\u003e \u003cp\u003eRisk Management Requirements 283\u003c\/p\u003e \u003cp\u003eSystemic Risk 287\u003c\/p\u003e \u003cp\u003eA Look to the Future 289\u003c\/p\u003e \u003cp\u003eCase Study: CIBC 292\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 17 Energy Firms 297\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIndustry Trends 298\u003c\/p\u003e \u003cp\u003eRisk Management Requirements 301\u003c\/p\u003e \u003cp\u003eA Look to the Future 310\u003c\/p\u003e \u003cp\u003eLessons Learned from Enron 313\u003c\/p\u003e \u003cp\u003eLessons Learned from the BP Oil Spill 314\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 18 Non-Financial Corporations 317\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRisk Management Requirements 317\u003c\/p\u003e \u003cp\u003eBest Practices in Corporate Risk Management 326\u003c\/p\u003e \u003cp\u003eCase Study: Microsoft 333\u003c\/p\u003e \u003cp\u003eCase Study: Ford 335\u003c\/p\u003e \u003cp\u003eCase Study: Airbus and Boeing 336\u003c\/p\u003e \u003cp\u003e\u003cb\u003eSection Four A Look to the Future 339\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 19 Predictions 341\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Profession of Risk Management 342\u003c\/p\u003e \u003cp\u003eTechnology and the Convergence of Risk Management 345\u003c\/p\u003e \u003cp\u003eTen Predictions 348\u003c\/p\u003e \u003cp\u003e2013 Looking Back 353\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 20 Everlast Financial 357\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eSection Five ERM Implementation 361\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 21 ERM Implementation 363\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBenefits of Corporate Governance and ERM Practices 364\u003c\/p\u003e \u003cp\u003eERM Implementation Requirements 366\u003c\/p\u003e \u003cp\u003eERM Maturity Model 373\u003c\/p\u003e \u003cp\u003eOther ERM Maturity Models 377\u003c\/p\u003e \u003cp\u003eRisk Culture 378\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 22 Role of the Board 381\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBoard Oversight Requirements 381\u003c\/p\u003e \u003cp\u003eCurrent Board Practices 383\u003c\/p\u003e \u003cp\u003eCase Study: JP Morgan Chase 386\u003c\/p\u003e \u003cp\u003eThe Last Line of Defense 388\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 23 Risk Assessment 399\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRisk Assessment Methodology 401\u003c\/p\u003e \u003cp\u003eBest Practice Case Studies in Risk Assessment 414\u003c\/p\u003e \u003cp\u003eAppendix: Risk Assessment Self-Evaluation Checklist 415\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 24 Risk-Based Decision Making 423\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eERM Decisions and Actions 423\u003c\/p\u003e \u003cp\u003eCreating Value through ERM 427\u003c\/p\u003e \u003cp\u003eCase Study: Duke Energy 437\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 25 Dashboard Reporting 439\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTraditional versus Dashboard Reporting 441\u003c\/p\u003e \u003cp\u003eGeneral Dashboard Applications 442\u003c\/p\u003e \u003cp\u003eERM Dashboard Implementation 444\u003c\/p\u003e \u003cp\u003eEvolving Best Practices 450\u003c\/p\u003e \u003cp\u003eNotes 451\u003c\/p\u003e \u003cp\u003eIndex 465\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eJAMES LAM\u003c\/b\u003e is widely recognized as the first ever Chief Risk Officer and a pioneer in the field of enterprise risk management. In a Euromoney survey, Mr. Lam was nominated by clients and peers as one of the world’s leading risk consultants. He currently serves as President of James Lam \u0026amp; Associates and Director and Chairman, Risk Oversight Committee of E*TRADE Financial. Previously, he held positions including Partner of Oliver Wyman, Founder and President of ERisk, Chief Risk Officer of Fidelity Investments, and Chief Risk Officer of GE Capital Markets Services, Inc. In 1997, Mr. Lam received the inaugural Risk Manager of the Year Award from the Global Association of Risk Professionals. \u003ci\u003eTreasury \u0026amp; Risk\u003c\/i\u003e magazine named him one of the “100 Most Influential People in Finance” in 2005, 2006, and 2008.   \u003c\/p\u003e\u003cp\u003eSuccessful risk management requires balance—of risk and reward, controls and culture, art and science. In the fully revised and updated \u003ci\u003eEnterprise Risk Management: From Incentives to Controls, Second Edition\u003c\/i\u003e, James Lam leads you on a thorough exploration of ERM from the unique perspective of one of the world’s foremost authorities on risk and business management. With an abundance of first-hand experience, Mr. Lam provides practical guidance from his work as a chief risk officer, a trusted board advisor and management consultant, and a public company director. Throughout the book, he provides case studies and real-world examples—every aspect of risk management is distilled and discussed—from the perspective of highly effective and proven corporate leadership. \u003c\/p\u003e\u003cp\u003eBusiness executives and risk management professionals are tasked with identifying and taking \u003ci\u003eintelligent\u003c\/i\u003e risks. In this book, Mr. Lam explains how an over-reliance on quantitative risk measurement has directly contributed to some of the high-profile risk management failures of recent years. Most risk models are simply incapable of accurately predicting the complex scenarios that could lead to financial disaster, which is why \u003ci\u003eEnterprise Risk Management: From Incentives to Controls, Second Edition\u003c\/i\u003e posits that your company’s risk profile—and ultimately the success or failure of its risk management strategy—is driven by the decisions and actions of its leadership and employees. \u003c\/p\u003e\u003cp\u003eBased on direct experience with more than 50 ERM programs, Mr. Lam explains how to establish best practices and overcome common barriers. In this updated Second Edition, a new section dedicated entirely to \u003cb\u003eERM Implementation\u003c\/b\u003e articulates the importance of effective board risk oversight, risk assessment, risk-based decision making, and risk dashboard reporting in a way that is accessible for board members, business executives, risk professionals as well as their employees and stakeholders. \u003ci\u003eEnterprise Risk Management: From Incentives to Controls, Second Edition\u003c\/i\u003e takes you far beyond quantitative risk measurement and predictive modeling to a comprehensive understanding of how to build and nurture a corporate culture that encourages successful enterprise risk management.   \u003c\/p\u003e\u003cp\u003e\u003cb\u003ePraise for \u003ci\u003eEnterprise Risk Management, Second Edition\u003c\/i\u003e\u003c\/b\u003e \u003c\/p\u003e\u003cp\u003e“The concept that it takes a lifetime to build a company but that it takes moments to destroy it is a very valuable mantra for business leaders. The impact of the recent financial crisis brought that perspective into sharp and, for some, painful relief. Companies, however, need to innovate and grow and to take appropriate risks to do so. The joy of James Lam’s new book is that it recognizes the need for innovation and growth but also acknowledges in a very practical way the role of the ever-evolving risk framework around that growth. The book offers a credible and implementable nexus between growth and risk control, and as such, will be a highly valued tool for boards and management everywhere.”\u003cbr\u003e —\u003cb\u003eRodger A. Lawson,\u003c\/b\u003e Chairman of the Board of Directors, E*TRADE Financial, Member of the Board of Directors, UnitedHealth Group, Retired President, Fidelity Investments \u003c\/p\u003e\u003cp\u003e“All too often, organizations focus on the process of risk management at the expense of incorporating risk management principles into the governance, leadership, and management of their enterprises. James Lam is a long-time leader in risk management and his substantial experience has enabled him to produce a comprehensive and practical guide for anyone committed to creating an organization capable of effectively evaluating risks versus returns.”\u003cbr\u003e —\u003cb\u003eMatthew R. Feldman,\u003c\/b\u003e President and Chief Executive Officer, Federal Home Loan Bank of Chicago \u003c\/p\u003e\u003cp\u003e“A key success factor in any ERM program is practical and effective implementation. In order to provide sustainable, long-term enterprise value, risk management must be integrated into an organization’s governance model, business analytics, strategic and tactical decisions, and dashboard reporting. Based on his hands-on experience, James Lam has very clearly outlined and articulated the best practices and implementation requirements for ERM. I highly recommend this book to anyone who is engaged in ERM oversight and implementation.”\u003cbr\u003e —\u003cb\u003ePaymon Aliabadi,\u003c\/b\u003e Executive Vice President and Chief Risk Officer, Exelon Corporation\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989141897445,"sku":"NP9781118413616","price":125.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118413616.jpg?v=1761782967","url":"https:\/\/k12savings.com\/es\/products\/enterprise-risk-management-isbn-9781118413616","provider":"K12savings","version":"1.0","type":"link"}