Empowered Enterprise Risk Management Theory and Practice
Produktdetaljer
Biografisk notat
Håkan Jankensgård is Associate Professor in Corporate Finance at Lund University where he teaches two courses (Corporate Valuation and Corporate Risk Management) on the master's program in Finance. Prior to entering academia, Håkan was corporate risk manager at Norsk Hydro with responsibility for developing their risk management program and risk model. He has published research on risk management in distinguished journals such as the Journal of Banking & Finance and Financial Management.
Petter Kapstad was responsible for building up Equinor's Enterprise Risk Management, which he headed for 14 years. At that time, Equinor's ERM included insurance, credit, operational risk, strategic risks and market risks. He had 18 years' experience from the trading environment in commercial banks prior to joining Equinor and has been an advisor to several international companies, boards and board members in building their ERM.
In this book, two experts on the topic raise the question of why many ERM programmes end up as box-checking silos with almost no connection to important decision-making processes, whereas others are empowered and end up having a profound impact on the firm’s culture, governance structures, and strategy process. The book establishes a path to empowered ERM by drawing on insights from theory and hard-won lessons from practice. Success factors enabling this transition are thoroughly discussed in a start-to-finish narrative describing the theoretical underpinnings of ERM, its proven best practices, and onto more advanced topic such as risk budgeting and the integration of ERM into strategic decision-making.
Preface ix
Chapter 1: Introduction to Empowered Enterprise Risk Management 1
Chapter 2: Risk Defined 12
Chapter 3: Risk Theory 29
Chapter 4: Risk Culture 46
Chapter 5: Risk Governance 60
Chapter 6: Risk Register 78
Chapter 7: Risk Response 95
Chapter 8: Risk Appetite 116
Chapter 9: Risk Budgeting 132
Chapter 10: Risk Strategy 148
Chapter 11: Risk in Practice: The Case of Equinor 166
Chapter 12: Concluding Remarks 191
Bibliography 199
Acknowledgements 203
Index 205
Praise for Empowered Enterprise Risk Management
"The authors have produced a thought-provoking and timely addition to how best to approach risk management. The chapters on budgeting and strategy are especially important and helpful in dealing with this evolving methodology. A valuable resource and an excellent addition to every risk manager's library."
John R.S. Fraser, former Chief Risk Officer and Senior Vice President of Internal Audit, Hydro One Inc.; author of Implementing Enterprise Risk Management: Case Studies and Best Practices and Enterprise Risk Management: Today's Leading Research and Best Practices for Tomorrow's Executives
"Jankensgård and Kapstad capture the practical reality and changing dynamics of managing enterprise risk in complex, global ecosystems. Empowered Enterprise Risk Management represents the trifecta of navigating and leveraging risk as a business asset and path to profitability. It provides a fundamental understanding of the theory, the business context through an evolving timeline of risk activities and cases, and practical, modernized advice to transform the management of risk through all organization levels."
Gary S. Lynch, CEO and Founder, Risk Project, LLC; author of The Uncertainty Advantage: Leadership Lessons in Turning Risk Outside-In and Single Point of Failure: The Ten Essential Laws of Supply Chain Risk Management; adviser to World Economic Forum and US Department of Commerce; lecturer at Massachusetts Institute of Technology and Stern School of Business, NY
"A timely entry into the expanding ERM literature with the right blend of theory and practice. Highly readable and informative without getting bogged down in details which could be accessed by interested readers elsewhere. The theoretical build-up expertly leads to the very relevant case study of one of the earliest practitioners of ERM: Statoil/Equinor. Readers should pay particular attention to the honest exposé of the history of ERM in the company from its pre-IPO in the late 1990s to the present. I strongly recommend the book to practitioners, students and academics."
Dr. Erol Hakanoglu, former Global Head of Enterprise Risk Management, Barclays; former Global Head of Capital Markets Strategies, Goldman, Sachs & Co.
Surveys reveal that most corporations devote considerable resources to risk management. However, while the multiple benefits of enterprise risk management (ERM) are evident, many executives remain unsure how to approach it. Written by two experts on the topic, Empowered Enterprise Risk Management offers organisations a set of tools for implementing the proven holistic risk management practices that will help companies realise fewer unexpected events, improve risk responses and facilitate the elimination of various suboptimal practices associated with the traditional, silo-based approach to risk management.
Empowered Enterprise Risk Management is a practical book filled with essential information needed to implement an effective ERM program and case studies that highlight each particular aspect or application of managing risk.
Produktdetaljer
Biografisk notat
Håkan Jankensgård is Associate Professor in Corporate Finance at Lund University where he teaches two courses (Corporate Valuation and Corporate Risk Management) on the master's program in Finance. Prior to entering academia, Håkan was corporate risk manager at Norsk Hydro with responsibility for developing their risk management program and risk model. He has published research on risk management in distinguished journals such as the Journal of Banking & Finance and Financial Management.
Petter Kapstad was responsible for building up Equinor's Enterprise Risk Management, which he headed for 14 years. At that time, Equinor's ERM included insurance, credit, operational risk, strategic risks and market risks. He had 18 years' experience from the trading environment in commercial banks prior to joining Equinor and has been an advisor to several international companies, boards and board members in building their ERM.