1st Edition

Fundamentals of Risk Management for Accountants and Managers

By Paul M. Collier Copyright 2009
    300 Pages
    by Routledge

    344 Pages
    by Routledge

    Both financial and non-financial managers with accountability for performance at either a strategic level or for a business unit have responsibility for risk management, in terms of failing to achieve organisational objectives.
    Fundamentals of Enterprise Risk management is structured around four parts and 26 self-contained chapters. Each chapter will have ample practical examples and illustrations/mini-case studies from retail, manufacturing and service industries and from the public and not-for-profit sectors to enable the reader to understand and apply the concepts in the book.

    Part A: Introducing risk management
    1.The emergence of risk
    The origins of the risk discipline in OH&S, insurance, project management and financial derivatives. Influence of key writers such as Beck and Adams.
    2.The corporate governance agenda
    The influence of Cadbury, corporate failures at Enron and WorldCom, Sarbanes-Oxley, the King Report, audit and risk committees.
    3.Corporate governance and risk management in the public and not-for-profit sectors

    Part B: A strategic perspective on Enterprise Risk Management
    4.Towards Enterprise Risk Management (ERM)
    The traditional approach to risk management compared with ERM. Various models of risk management, e.g. COSO (US), the IRM (UK), the Australian risk standard, Basel, etc.
    5.Risk and strategy: product/markets, supply chain, competitive position, brands, regulation, technology change, reputation, distribution channels. Risk and sustainable competitive advantage.
    6.Risk categorisation
    Types of risk and the advantages of categorisation
    7.Techniques for identifying and assessing risks
    Likelihood/consequences. Risk registers. Risk reviews.
    8.The manager's role in risk management
    Role of the risk manager. Risk management groups. Risk management software. Risk management policy
    9.Risk and culture
    Risk appetite. National, organisational and professional cultures. Embedding risk into the organisation.

    Part C: Risk applications in the organisation
    10.Risk and financial reporting
    Reporting to shareholders, divisional performance measurement
    11.Risk and financial decision making
    Budgeting, profitability analysis, capital investment
    12.Risk and information systems
    Systems design, development and implementation. The IT environment and different applications. Networks. IT controls
    13.Risk in financial services
    Derivatives, Interest rates, Foreign exchange
    14.Health and safety risk management
    Risk assessments. Risk auditing. Risk recording
    15.Credit risk management
    Credit approval. Credit management. Credit financing.
    16.Asset risk management
    Supply chain risks. Purchasing risk. Breakdown risk. Obsolescence risk.
    17.Project risk management and contract risk
    Legal and commercial risk. Negotiating and managing contracts and projects. Technical and contractual delivery.
    18.Risk and fraud
    Preventing, identifying and responding to fraud
    19.Risk and the environment
    Pollution, contamination, sustainability and global warming. ISO14000
    20.Risk and crisis management
    From 9/11 to business continuity
    21.Risk and insurance
    Principles of insurance. Liability. Property. Self insurance. Reinsurance.

    Part D: Evaluating risk management
    22.Risk, the audit committee and the risk committee
    23.Risk and internal control
    24.Risk and internal audit
    25.Auditing risk management
    26.The future of risk management

    Glossary of terms
    Index

    Biography

    Paul M Collier

    "I think that this book could be used for students at a number of levels. For example in the 1st year of our undergraduate degree we have struggled to find a text that that gives the students a flavour of the in-depth topics that will follow"