Fundamentals of Risk Management for Accountants and Managers
Tools & TechniquesBy
- Paul M. Collier, Senior Lecturer, Management Accounting, Department of Accounting and Finance, Monash University in Melbourne, Australia
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.
* Undergraduate and postgraduate accounting and management students* Students from a variety of disciplines aspiring to general management* Specialist students of risk management who want a broad-based enterprise-level understanding of risk management
Published: March 2009
Imprint: Butterworth Heinemann
- Part A: Introducing risk management1.The emergence of riskThe 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 agendaThe 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 sectorsPart B: A strategic perspective on Enterprise Risk Management4.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 categorisationTypes of risk and the advantages of categorisation7.Techniques for identifying and assessing risksLikelihood/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 policy9.Risk and cultureRisk appetite. National, organisational and professional cultures. Embedding risk into the organisation.Part C: Risk applications in the organisation10.Risk and financial reportingReporting to shareholders, divisional performance measurement11.Risk and financial decision makingBudgeting, profitability analysis, capital investment12.Risk and information systemsSystems design, development and implementation. The IT environment and different applications. Networks. IT controls13.Risk in financial servicesDerivatives, Interest rates, Foreign exchange14.Health and safety risk managementRisk assessments. Risk auditing. Risk recording15.Credit risk managementCredit approval. Credit management. Credit financing.16.Asset risk managementSupply chain risks. Purchasing risk. Breakdown risk. Obsolescence risk.17.Project risk management and contract riskLegal and commercial risk. Negotiating and managing contracts and projects. Technical and contractual delivery.18.Risk and fraudPreventing, identifying and responding to fraud19.Risk and the environmentPollution, contamination, sustainability and global warming. ISO1400020.Risk and crisis managementFrom 9/11 to business continuity21.Risk and insurancePrinciples of insurance. Liability. Property. Self insurance. Reinsurance.Part D: Evaluating risk management22.Risk, the audit committee and the risk committee23.Risk and internal control24.Risk and internal audit25.Auditing risk management26.The future of risk managementGlossary of terms Index