Risk management has become a critical part of doing business in the twenty-first century. This book is a collection of material about enterprise risk management, and the role of risk in decision making. Part I introduces the topic of enterprise risk management. Part II presents enterprise risk management from perspectives of finance, accounting, insurance, supply chain operations, and project management. Technology tools are addressed in Part III, including financial models of risk as well as accounting aspects, using data envelopment analysis, neural network tools for credit risk evaluation, and real option analysis applied to information techn- ogy outsourcing. In Part IV, three chapters present enterprise risk management experience in China, including banking, chemical plant operations, and information technology. Lincoln, USA David L. Olson Toronto, Canada Desheng Wu February 2008 v Contents Part I Preliminary 1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 David L. Olson & Desheng Wu 2 The Human Reaction to Risk and Opportunity . . . . . . . . . . . . . . . . . . . 7 David R. Koenig Part II ERM Perspectives 3 Enterprise Risk Management: Financial and Accounting Perspectives . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Desheng Wu & David L. Olson 4 An Empirical Study on Enterprise Risk Management in Insurance . . 39 Madhusudan Acharyya 5 Supply Chain Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 David L. Olson & Desheng Wu 6 Two Polar Concept of Project Risk Management. . . . . . . . . . . . . . . . . . 69 Seyed Mohammad Seyedhoseini, Siamak Noori & Mohammed AliHatefi Part III ERM Technologies 7 The Mathematics of Risk Transfer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Marcos Escobar & Luis Seco 8 Stable Models in Risk Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

This book provides readers an understanding of the implementation of Enterprise Risk Management (ERM) for international construction operations. In an extended case study, it primarily focuses on Chinese construction firms (CCFs) based in Singapore. In this regard, the book explains the differences and similarities between Risk Management (RM), Project Risk Management (PRM) and ERM in the construction industry, and examines their linkages for international construction operations in a broader context. The explanation elaborates on how companies may adopt and implement RM, PRM and ERM as appropriate in their various operations, both in their home market as well as in overseas host markets. The book also reviews the whole spectrum of work relating to organizational behavior (OB) as one of the key underpinnings for companies to evaluate and implement ERM. It will benefit practitioners from the industry as well as academics interested in the implementation of ERM practices in international construction operations.

This book expands the scope of risk management beyond insurance and finance to include accounting risk, terrorism, and other issues that can threaten an organization. It approaches risk management from five perspectives: in addition to the core perspective of financial risk management, it addresses perspectives of accounting, supply chains, information systems, and disaster management. It also covers balanced scorecards, multiple criteria analysis, simulation, data envelopment analysis, and financial risk measures that help assess risk, thereby enabling a well-informed managerial decision making.The book concludes by looking at four case studies, which cover a wide range of topics. These include such practical issues as the development and implementation of a sound risk management structure; supply chain risk and enterprise resource planning systems in information systems, and disaster management.

Essential insights on the various aspects of enterprise risk management If you want to understand enterprise risk management from some of the leading academics and practitioners of this exciting new methodology, Enterprise Risk Management is the book for you. Through in-depth insights into what practitioners of this evolving business practice are actually doing as well as anticipating what needs to be taught on the topic, John Fraser and Betty Simkins have sought out the leading experts in this field to clearly explain what enterprise risk management is and how you can teach, learn, and implement these leading practices within the context of your business activities. In this book, the authors take a broad view of ERM, or what is called a holistic approach to ERM. Enterprise Risk Management introduces you to the wide range of concepts and techniques for managing risk in a holistic way that correctly identifies risks and prioritizes the appropriate responses. This invaluable guide offers a broad overview of the different types of techniques: the role of the board, risk tolerances, risk profiles, risk workshops, and allocation of resources, while focusing on the principles that determine business success. This comprehensive resource also provides a thorough introduction to enterprise risk management as it relates to credit, market, and operational risk, as well as the evolving requirements of the rating agencies and their importance to the overall risk management in a corporate setting. Filled with helpful tables and charts, Enterprise Risk Management offers a wealth of knowledge on the drivers, the techniques, the benefits, as well as the pitfalls to avoid, in successfully implementing enterprise risk management. Discusses the history of risk management and more recently developed enterprise risk management practices and how you can prudently implement these techniques within the context of your underlying business activities Provides coverage of topics such as the role of the chief risk officer, the use of anonymous voting technology, and risk indicators and their role in risk management Explores the culture and practices of enterprise risk management without getting bogged down by the mathematics surrounding the more conventional approaches to financial risk management This informative guide will help you unlock the incredible potential of enterprise risk management, which has been described as a proxy for good management.

This textbook, now in its fourth edition, serves as a comprehensive guide to learning various aspects of risk, encompassing supply chain management, artificial intelligence, and sustainability. It demonstrates a wide range of operations research models that have been successfully applied to enterprise supply chain risk management. Each chapter of the book can function as a standalone module focusing on a specific topic, offering dedicated examples, definitions, and discussion notes. The publication of this book comes at a crucial time when the world is facing increasing challenges from various forms of risk. Events such as Covid-19, the energy crisis, wars, and terrorism in the 21st century have all disrupted supply chains, thus highlighting the critical importance of enterprise risk management. Additional risks, such as financial and technological bubbles, along with concerns surrounding rampant artificial intelligence, contribute to a climate that demands enhanced risk management within organizations.