Practical Enterprise Risk Management: A Business Process Approach

✍ Scribed by Gregory H. Duckert

• Publisher: Wiley
• Year: 2010
• Tongue: English
• Leaves: 291
• Series: Wiley Corporate F&A
• Edition: 1
• Category: Library

✦ Synopsis

The most practical and sensible way to implement ERM-while avoiding all of the classic mistakesEmphasizing an enterprise risk management approach that utilizes actual business data to estimate the probability and impact of key risks in an organization, Practical Enterprise Risk Management: A Business Process Approach boils this topic down to make it accessible to both line managers and high level executives alike. The key lessons involve basing risk estimates and prevention techniques on known quantities rather than subjective estimates, which many popular ERM methodologies consist of.Shows readers how to look at real results and actual business processes to get to the root cause of key risksExplains how to manage risks based on an understanding of the problem rather than best guess estimatesEmphasizes a focus on potential outcomes from existing processes, as well as a look at actual outcomes over timeThroughout, practical examples are included from various healthcare, manufacturing, and retail industries that demonstrate key concepts, implementation guidance to get started, as well as tables of risk indicators and metrics, physical structure diagrams, and graphs.

✦ Table of Contents

Practical Enterprise Risk Management: A Business Process Approach......Page 3
Contents......Page 7
Preface......Page 9
Acknowledgments......Page 13
THE GREAT SOX FALLACY......Page 15
THE VISION-CHALLENGED LEADING THE EVEN-MORE-VISION-CHALLENGED......Page 17
SYSTEMIC FAILURE: CRITICAL SHORTCOMINGS OF APPLICATION SYSTEMS IMPLEMENTATION......Page 18
WHAT IS GRC ANYWAY?......Page 27
ARE YOU CUBIN’?......Page 28
DON’T BE MISLED: WHAT ERM IS NOT......Page 37
KEY QUALITIES OF AN EFFECTIVE ERM......Page 41
PRIMARY COMPONENTS OF RISK ASSESSMENT......Page 46
NEED FOR A BRAIN (BUSINESS RISK ASSESSMENT INFORMATION NETWORK)......Page 47
PROCESS OF CREATING A BRAIN......Page 49
A BANKING EXAMPLE......Page 52
DETERMINING THE CORE BUSINESS PROCESSES......Page 54
SETTING THE STRUCTURE: CREATING A PHYSICAL MAP......Page 56
A MEDICAL EXAMPLE: A HEALTHCARE SYSTEM......Page 57
IMPACT ANALYSIS......Page 66
IT’S ABOUT THE OUTCOME, STUPID!......Page 73
RISK NEVER LIVES ALONE......Page 76
DEFINING BASELINE CATEGORIES OF BUSINESS RISK......Page 78
EVALUATING ALL OF THE POSSIBILITIES: THE RISK UNIVERSE......Page 88
USING THE BUSINESS STRUCTURE TO DRIVE THE RISKS......Page 90
DISTRIBUTED RISK ASSESSMENT AND MANAGEMENT (DRAM)......Page 91
DEFINING RISK IN THE CONTEXT OF THE BUSINESS......Page 94
WHY USE DATA TO DEFINE RISK? THE THREE ATTRIBUTES......Page 95
DATA-CENTRIC ERM (DCERM)......Page 101
MULTI-DIMENSIONAL RISK ASSESSMENT......Page 102
THE MODEL AND WHY IT IS NECESSARY......Page 106
MOVING FROM REACTIVE TO PROACTIVE RISK MANAGEMENT......Page 107
OUTCOME/RAW (OR) DATA AND WHY IT IS CRITICAL......Page 108
KRIs NOT KPIs......Page 112
OPTIONS ON HOW TO DRIVE THE MODEL......Page 114
DASHBOARD INDICATORS......Page 125
KEY EARLY WARNING INDICATORS......Page 127
DETERMINING THE KEY RISK INDICATORS......Page 129
UNIVERSAL RISK INDICATORS......Page 131
FINANCIAL, OPERATIONAL, REGULATORY, AND TECHNOLOGICAL KRIs......Page 134
BUILDING ERM ONE STEP AT A TIME......Page 136
MAPPING THE PHYSICAL STRUCTURE OF THE ENTERPRISE......Page 137
DEFINING THE BUSINESS RISKS OF THE ENTERPRISE: UTILIZING KEY OUTCOMES......Page 147
DEVELOPING KRIs FOR ASSESSING RISK FOR THE ENTIRE ENTERPRISE......Page 158
DETAILED INVENTORIES OF KRIs: WHEN GREATER AUTOMATION/SOPHISTICATION IS ACHIEVED......Page 167
EMBEDDING RISK REGISTERS AND KEY INFORMATION IN THE PHYSICAL MAPPING......Page 183
THE MODULAR APPROACH......Page 186
DETERMINING A FOCUSED OUTCOME GROUP (FOG)......Page 187
NET RISK VERSUS RESIDUAL RISK......Page 189
BUSINESS RISK ANALYSIS TECHNIQUES (BRATs)......Page 191
UTILIZING LOGICAL DATA PATHWAYS TO FOCUS ON ROOT CAUSE AND RESOLVE IT......Page 214
ERM FOR THE TWENTY-FIRST CENTURY......Page 217
SYSTEMS STRATEGIES......Page 218
DESIGNING RISK-CENTRIC SYSTEMS FOR EFFICIENCY/GOVERNANCE: STEP BY STEP......Page 219
DYNAMICALLY INTEGRATED RISK EVALUATION (DIRE)......Page 225
TRIGGERS AND MOMS......Page 226
REAL-TIME PROFILING......Page 228
SETTING STANDARDS FOR FUTURE EVOLUTION......Page 233
MANAGING RISK/AUDITING REAL TIME......Page 235
MONITORING CONTROLS WITH METRICS......Page 238
UTILIZING ERM TO REDUCE AUDIT FEES AND LOWER THE COSTS OF OPERATION......Page 240
MERGERS AND ACQUISITIONS: LET’S BUY SOME MORE RISK......Page 242
OUTSOURCING: WHAT YOU DON’T KNOW COULD KILL YOUR ORGANIZATION......Page 248
DEBUNKING THE OUTSOURCING MYTHS: THE VENTORO STUDY......Page 260
WHO OWNS THE RISK MANAGEMENT PROCESS?......Page 274
INVOLVING THE STAKEHOLDERS: CREATING A CRITICAL BUSINESS TOOL......Page 275
EXTENDING THE IMPACT: MAKING IT A COMPANY ESSENTIAL......Page 276
STRATEGICALLY LINKING KEY RISKS AND KEY CONTROLS: CREATING A HOME......Page 277
BUILDING THE DREAM HOME: AUTOMATING EVEN YOUR SOX......Page 279
About the Author......Page 283
Index......Page 285