{"product_id":"implementing-enterprise-risk-management-isbn-9780471745198","title":"Implementing Enterprise Risk Management","description":"\u003cb\u003eA practical, real-world guide for implementing enterprise risk management (ERM) programs into your organization\u003c\/b\u003e \u003cp\u003eEnterprise risk management (ERM) is a complex yet critical issue that all companies must deal with in the twenty-first century. Failure to properly manage risk continues to plague corporations around the world. ERM empowers risk professionals to balance risks with rewards and balance people with processes.\u003c\/p\u003e \u003cp\u003eBut to master the numerous aspects of enterprise risk management, you must integrate it into the culture and operations of the business. No one knows this better than risk management expert James Lam, and now, with \u003ci\u003eImplementing\u003c\/i\u003e \u003ci\u003eEnterprise Risk Management: From Methods to Applications\u003c\/i\u003e, he distills more than thirty years' worth of experience in the field to give risk professionals a clear understanding of how to implement an enterprise risk management program for every business.\u003c\/p\u003e \u003cul\u003e \u003cli\u003eOffers valuable insights on solving real-world business problems using ERM\u003c\/li\u003e \u003cli\u003eEffectively addresses how to develop specific ERM tools\u003c\/li\u003e \u003cli\u003eContains a significant number of case studies to help with practical implementation of an ERM program\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eWhile \u003ci\u003eEnterprise Risk Management: From Incentives to Controls, Second Edition\u003c\/i\u003e focuses on the \"what\" of ERM, \u003ci\u003eImplementing\u003c\/i\u003e \u003ci\u003eEnterprise Risk Management: From Methods to Applications\u003c\/i\u003e will help you focus on the \"how.\" Together, these two resources can help you meet the enterprise-wide risk management challenge head on—and succeed.\u003c\/p\u003e \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003eAcknowledgments xix\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart One ERM in Context\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Fundamental Concepts and Current State 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 3\u003c\/p\u003e \u003cp\u003eWhat Is Risk? 4\u003c\/p\u003e \u003cp\u003eWhat Does Risk Look Like? 8\u003c\/p\u003e \u003cp\u003eEnterprise Risk Management (ERM) 11\u003c\/p\u003e \u003cp\u003eThe Case for ERM 13\u003c\/p\u003e \u003cp\u003eWhere ERM Is Now 18\u003c\/p\u003e \u003cp\u003eWhere ERM Is Headed 19\u003c\/p\u003e \u003cp\u003eNotes 20\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Key Trends and Developments 21\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 21\u003c\/p\u003e \u003cp\u003eLessons Learned from the Financial Crisis 21\u003c\/p\u003e \u003cp\u003eThe Wheel of Misfortune Revisited 26\u003c\/p\u003e \u003cp\u003eGlobal Adoption 34\u003c\/p\u003e \u003cp\u003eNotes 37\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Performance-Based Continuous ERM 41\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 41\u003c\/p\u003e \u003cp\u003ePhase Three: Creating Shareholder Value 43\u003c\/p\u003e \u003cp\u003ePerformance-Based Continuous ERM 44\u003c\/p\u003e \u003cp\u003eCase Study: Legacy Technology 56\u003c\/p\u003e \u003cp\u003eNotes 59\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Stakeholder Requirements 61\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 61\u003c\/p\u003e \u003cp\u003eStakeholders Defined 62\u003c\/p\u003e \u003cp\u003eManaging Stakeholder Value with ERM 79\u003c\/p\u003e \u003cp\u003eImplementing a Stakeholder Management Program 80\u003c\/p\u003e \u003cp\u003eAppendix A: Reputational Risk Policy 83\u003c\/p\u003e \u003cp\u003eNotes 87\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Two Implementing an ERM Program\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 The ERM Project 93\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 93\u003c\/p\u003e \u003cp\u003eBarriers to Change 93\u003c\/p\u003e \u003cp\u003eEstablish the Vision 95\u003c\/p\u003e \u003cp\u003eObtain Buy-In from Internal Stakeholders 97\u003c\/p\u003e \u003cp\u003eAssess Current Capabilities against Best Practices 100\u003c\/p\u003e \u003cp\u003eDevelop a Roadmap 104\u003c\/p\u003e \u003cp\u003eAppendix A: ERM Maturity Model 108\u003c\/p\u003e \u003cp\u003eAppendix B: Practical Plan for ERM Program Implementation 111\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Risk Culture 115\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 115\u003c\/p\u003e \u003cp\u003eRisk Culture Success Factors 117\u003c\/p\u003e \u003cp\u003eBest Practice: Risk Escalation 130\u003c\/p\u003e \u003cp\u003eConclusion 130\u003c\/p\u003e \u003cp\u003eNotes 131\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 The ERM Framework 132\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 132\u003c\/p\u003e \u003cp\u003eThe Need for an ERM Framework 132\u003c\/p\u003e \u003cp\u003eERM Framework Criteria 136\u003c\/p\u003e \u003cp\u003eCurrent ERM Frameworks 138\u003c\/p\u003e \u003cp\u003eAn Update: The Continuous ERM Model 145\u003c\/p\u003e \u003cp\u003eDeveloping a Framework 150\u003c\/p\u003e \u003cp\u003eConclusion 153\u003c\/p\u003e \u003cp\u003eNotes 153\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Three Governance Structure and Policies\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 The Three Lines of Defense 157\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 157\u003c\/p\u003e \u003cp\u003eCOSO’s Three Lines of Defense 158\u003c\/p\u003e \u003cp\u003eProblems with This Structure 160\u003c\/p\u003e \u003cp\u003eThe Three Lines of Defense Revisited 164\u003c\/p\u003e \u003cp\u003eBringing It All Together: How the Three Lines Work in Concert 172\u003c\/p\u003e \u003cp\u003eConclusion 173\u003c\/p\u003e \u003cp\u003eNotes 173\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Role of the Board 175\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 175\u003c\/p\u003e \u003cp\u003eRegulatory Requirements 176\u003c\/p\u003e \u003cp\u003eCurrent Board Practices 179\u003c\/p\u003e \u003cp\u003eCase Study: Satyam 180\u003c\/p\u003e \u003cp\u003eThree Levers for ERM Oversight 181\u003c\/p\u003e \u003cp\u003eConclusion 189\u003c\/p\u003e \u003cp\u003eNotes 189\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 The View from the Risk Chair 191\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 191\u003c\/p\u003e \u003cp\u003eTurnaround Story 191\u003c\/p\u003e \u003cp\u003eThe GPA Model in Action 192\u003c\/p\u003e \u003cp\u003eTop Priorities for the Risk Oversight Committee 192\u003c\/p\u003e \u003cp\u003eConclusion 196\u003c\/p\u003e \u003cp\u003eNotes 197\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Rise of the CRO 198\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 198\u003c\/p\u003e \u003cp\u003eHistory and Rise of the CRO 199\u003c\/p\u003e \u003cp\u003eA CRO’s Career Path 201\u003c\/p\u003e \u003cp\u003eThe CRO’s Role 202\u003c\/p\u003e \u003cp\u003eHiring a CRO 206\u003c\/p\u003e \u003cp\u003eA CRO’s Progress 208\u003c\/p\u003e \u003cp\u003eChief Risk Officer Profiles 212\u003c\/p\u003e \u003cp\u003eNotes 225\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Risk Appetite Statement 227\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 227\u003c\/p\u003e \u003cp\u003eRequirements of a Risk Appetite Statement 228\u003c\/p\u003e \u003cp\u003eDeveloping a Risk Appetite Statement 233\u003c\/p\u003e \u003cp\u003eRoles and Responsibilities 239\u003c\/p\u003e \u003cp\u003eMonitoring and Reporting 242\u003c\/p\u003e \u003cp\u003eExamples of Risk Appetite Statements and Metrics 246\u003c\/p\u003e \u003cp\u003eNotes 250\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Four Risk Assessment and Quantification\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Risk Control Self-Assessments 255\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 255\u003c\/p\u003e \u003cp\u003eRisk Assessment: An Overview 255\u003c\/p\u003e \u003cp\u003eRCSA Methodology 256\u003c\/p\u003e \u003cp\u003ePhase 1: Setting the Foundation 259\u003c\/p\u003e \u003cp\u003ePhase 2: Risk Identification, Assessment, and Prioritization 262\u003c\/p\u003e \u003cp\u003ePhase 3: Deep Dives, Risk Quantification, and Management 267\u003c\/p\u003e \u003cp\u003ePhase 4: Business and ERM Integration 270\u003c\/p\u003e \u003cp\u003eERM and Internal Audit Collaboration 272\u003c\/p\u003e \u003cp\u003eNotes 273\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Risk Quantification Models 274\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 274\u003c\/p\u003e \u003cp\u003eMarket Risk Models 275\u003c\/p\u003e \u003cp\u003eCredit Risk Models 278\u003c\/p\u003e \u003cp\u003eOperational Risk Models 281\u003c\/p\u003e \u003cp\u003eModel Risk Management 283\u003c\/p\u003e \u003cp\u003eThe Loss\/Event Database 288\u003c\/p\u003e \u003cp\u003eEarly Warning Indicators 289\u003c\/p\u003e \u003cp\u003eModel Risk Case Study: AIG 289\u003c\/p\u003e \u003cp\u003eNotes 290\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Five Risk Management\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 Strategic Risk Management 295\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 295\u003c\/p\u003e \u003cp\u003eThe Importance of Strategic Risk 296\u003c\/p\u003e \u003cp\u003eMeasuring Strategic Risk 299\u003c\/p\u003e \u003cp\u003eManaging Strategic Risk 301\u003c\/p\u003e \u003cp\u003eAppendix A: Strategic Risk Models 310\u003c\/p\u003e \u003cp\u003eNotes 312\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 16 Risk-Based Performance Management 314\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 314\u003c\/p\u003e \u003cp\u003ePerformance Management and Risk 316\u003c\/p\u003e \u003cp\u003ePerformance Management and Capital 317\u003c\/p\u003e \u003cp\u003ePerformance Management and Value Creation 319\u003c\/p\u003e \u003cp\u003eSummary 323\u003c\/p\u003e \u003cp\u003eNotes 324\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Six Risk Monitoring and Reporting\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 17 Integration of KPIs and KRIs 327\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 327\u003c\/p\u003e \u003cp\u003eWhat Is an Indicator? 327\u003c\/p\u003e \u003cp\u003eUsing Key Performance Indicators 329\u003c\/p\u003e \u003cp\u003eBuilding Key Risk Indicators 330\u003c\/p\u003e \u003cp\u003eKPI and KRI Program Implementation 335\u003c\/p\u003e \u003cp\u003eBest Practices 337\u003c\/p\u003e \u003cp\u003eConclusion 338\u003c\/p\u003e \u003cp\u003eNotes 339\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 18 ERM Dashboard Reporting 340\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 340\u003c\/p\u003e \u003cp\u003eTraditional Risk Reporting vs. ERM Dashboard Reporting 344\u003c\/p\u003e \u003cp\u003eGeneral Dashboard Requirements 348\u003c\/p\u003e \u003cp\u003eImplementing ERM Dashboards 351\u003c\/p\u003e \u003cp\u003eAvoid Common Mistakes 357\u003c\/p\u003e \u003cp\u003eBest Practices 358\u003c\/p\u003e \u003cp\u003eNotes 361\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 19 Feedback Loops 362\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 362\u003c\/p\u003e \u003cp\u003eWhat Is a Feedback Loop? 363\u003c\/p\u003e \u003cp\u003eExamples of Feedback Loops 364\u003c\/p\u003e \u003cp\u003eERM Performance Feedback Loop 366\u003c\/p\u003e \u003cp\u003eMeasuring Success with the ERM Scorecard 368\u003c\/p\u003e \u003cp\u003eNotes 371\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart Seven Other ERM Resources\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 20 Additional ERM Templates and Outlines 375\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 375\u003c\/p\u003e \u003cp\u003eStrategic Risk Assessment 375\u003c\/p\u003e \u003cp\u003eCRO Report to the Risk Committee 376\u003c\/p\u003e \u003cp\u003eCybersecurity Risk Appetite and Metrics 378\u003c\/p\u003e \u003cp\u003eModel Risk Policy 380\u003c\/p\u003e \u003cp\u003eRisk Escalation Policy 382\u003c\/p\u003e \u003cp\u003eNotes 385\u003c\/p\u003e \u003cp\u003eAbout the Author 386\u003c\/p\u003e \u003cp\u003eIndex 387\u003c\/p\u003e   \u003cp\u003e\u003cb\u003eJAMES LAM\u003c\/b\u003e is president of James Lam \u0026amp; Associates, a risk management consulting firm. He serves on the board of directors of E*TRADE Financial and chairs the Risk Oversight Committee. An NACD Board Leadership Fellow, he is author of the bestselling risk management title, \u003ci\u003eEnterprise Risk Management\u003c\/i\u003e.     \u003c\/p\u003e\u003cp\u003e\u003cb\u003eA\u003c\/b\u003es the speed at which companies do business all over the world increases, so does the velocity of existential risks. Still, even risk professionals with exemplary knowledge will not be successful unless they can effectively put their ideas into practice— \u003ci\u003eImplementing Enterprise Risk Management\u003c\/i\u003e turns their expertise into business value.  \u003c\/p\u003e\u003cp\u003ePicking up where \u003ci\u003eEnterprise Risk Management\u003c\/i\u003e leaves off, pioneering risk management authority James Lam distills his more than thirty years of experience at the highest levels of business into a clear, focused approach to integrating an enterprise risk management (ERM) program into any company. His innovative performance-based continuous model for ERM is specifically designed to tackle the global risks facing today's organizations in such areas as strategic risk management and cyber security.  \u003c\/p\u003e\u003cp\u003eGetting an ERM system up and running is a complex, multi-year effort, and this complete blueprint ensures everything is on track at the very start, from outlining the scope and goals of an ERM initiative through using the accurate and insightful metrics, reports, and feedback loops critical to maintaining program effectiveness. Revealing case studies and examples demonstrate how to implement an ERM program in two years, integrate risk into business decisions, create a cyber security risk appetite statement and metrics, structure a concise report from the Chief Risk Officer to the risk committee, and more. Keep this versatile book at your fingertips for everyday guidance on:  \u003c\/p\u003e\u003cul\u003e \u003cli\u003eOvercoming common execution issues and cultural barriers to proficiently implement a sophisticated ERM program\u003c\/li\u003e \u003cli\u003eUsing an exclusive customized model of tiered defenses to clearly define the role of the board, corporate management, and operating units\u003c\/li\u003e \u003cli\u003eDeveloping and applying state-of-the-art ERM processes and tools to make more- informed business decisions and create value\u003c\/li\u003e \u003cli\u003eEnhancing the risk culture of the organization by aligning performance measurement and incentives\u003c\/li\u003e \u003cli\u003eIncorporating the opportunity side of risk in maximizing risk-adjusted profitability\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eFind the optimal balance of risks and rewards with \u003ci\u003eImplementing Enterprise Risk Management\u003c\/i\u003e.     \u003c\/p\u003e\u003cp\u003ePraise for \u003cb\u003eImplementing Enterprise Risk Management\u003c\/b\u003e  \u003c\/p\u003e\u003cp\u003e\"James Lam provides a strong case that ERM should be a continuous process that is aligned with the strategy and risks of the organization. He offers detailed and practical information on how to structure a robust, dynamic process that stays closely attuned to business risks and how to ensure that ERM fulfills the expectations of all stakeholders.\"\u003cbr\u003e \u003cb\u003e—Ann C. Berzin\u003c\/b\u003e, Board Member of Exelon Corporation, Ingersoll-Rand plc  \u003c\/p\u003e\u003cp\u003e\"In these times of rapid change and business model disruption, ERM must go beyond regulatory checklists and compliance. Effective implementation of ERM informs business strategy and can lead to breakthrough value creation. James Lam makes a compelling argument that boards have both a strategic and a fiduciary responsibility to ensure that a strong ERM program is in place, and gives wise and practical guidance on how to do so.\"\u003cbr\u003e \u003cb\u003e—Irene Chang Britt,\u003c\/b\u003e Board Member of Dunkin' Brands, Tailored Brands, TerraVia; CEO, ICB Enterprises, LLC  \u003c\/p\u003e\u003cp\u003e\"In a world of heightened expectations from investors, regulators, and the public, this book is a must read for corporate directors and executives on the keys to effective risk oversight and how to successfully integrate it into corporate strategy.\"\u003cbr\u003e \u003cb\u003e—Robert H. Herz,\u003c\/b\u003e Board Member of Fannie Mae, Morgan Stanley, Workiva; Former Chairman of the Financial Accounting Standards Board (2002-2010)  \u003c\/p\u003e\u003cp\u003e\"Well, it should be crystal clear from reading this latest book why James Lam was invited to be on the COSO Advisory Committee to revise the 2004 ERM framework. He's a true thought leader and luminary, helping us all to make progress on the ERM journey to higher performance.\"\u003cbr\u003e \u003cb\u003e—Robert B. Hirth, Jr.,\u003c\/b\u003e Chairman, Committee of Sponsoring Organizations of the Treadway Commission (COSO); Senior Managing Director, Protiviti  \u003c\/p\u003e\u003cp\u003e\"A terrific compendium of practical approaches and case studies for implementing an effective ERM framework. James Lam's advocacy of performance feedback loops provides an important innovation to adaptive risk management programs. This book also highlights the increasingly critical role of Chief Risk Officers in defining strategy for companies that adhere to a clearly articulated risk appetite statement.\"\u003cbr\u003e \u003cb\u003e—Bradford Hu,\u003c\/b\u003e Chief Risk Officer, Citigroup\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989407449317,"sku":"NP9780471745198","price":100.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780471745198.jpg?v=1761783983","url":"https:\/\/k12savings.com\/es\/products\/implementing-enterprise-risk-management-isbn-9780471745198","provider":"K12savings","version":"1.0","type":"link"}