Two Headed Coin - Unifying Strategy and Risk in Pursuit of Performance

Discover the interplay between strategy and risk in this insightful new resource from two experts in the financial industry who have applied their knowledge to multiple industries
 
In The Two Headed Coin, accomplished authors James L. Darroch and David Wm. Finnie deliver an insightful exploration of the interplay between strategy and risk that underlies the operational framework of successful organizations. You'll learn which risks are fundamental to the strategic positioning and goals of your organization and which are not. You'll also discover the importance of an independent risk function, e,g., the CRO, and its invaluable role as part of the strategic process.
 
You'll also find:
* A thorough discussion of the notion of competitive advantage and how it relates to risk
* An exploration of consumer perception and reputation as an asset to be managed
* How to use scenario planning and real options to provide a framework for managing uncertainty
* How a focus on culture and ethics can minimize the risk of large losses due to adverse behaviors
 
Perfect for risk management and strategy professionals The Two Headed Coin will also earn a place in the libraries of executives and managers who wish to improve their ability to integrate strategic and risk thinking to create competitive advantage.

List of contents

Preface: Risk is Good and Uncertainty is the Reality! xi
 
Acknowledgments xxv
 
About the Authors xxix
 
Chapter 1 Strategy and Risk: Two Sides of the Same Coin 1
 
Strategic Positioning and Risk 6
 
Strategy and Risk in a Start-Up 7
 
Chapter 2 Executing on the Plan and Discovering New Risks 17
 
The Assumption of Goal Congruence and the Importance of Culture 21
 
Conclusion 27
 
Chapter 3 Which Risks to Keep 31
 
Strategic Positioning and Risk Governance 38
 
How Does Risk Management Help Close the Gap Between Strategy Formulation and Execution? 40
 
Conclusion: Embracing and Managing Risk 42
 
Chapter 4 How Do We Achieve Independent Risk Governance and Improve Performance? 47
 
What Do We Mean by ERM? 51
 
Chapter 5 Who Has the Specific Knowledge to Design the Risk Architecture? Why You Need an Independent Risk Function 61
 
The Strategy-Risk-Governance Process 61
 
Meeting the Objective and the Categorization of Risks 69
 
The Risk Architecture 71
 
Creation of a Risk Function 73
 
Conclusion 76
 
Chapter 6 Enterprise Risk Management and Competitive Advantage 79
 
How Does Strategy Affect Randomness? 86
 
Chapter 7 What Reputation Do We Want? With Whom? 91
 
Managing Reputation Risk 99
 
Chapter 8 Uncertainty, Scenario Planning, and Real Options 105
 
Real Options 113
 
Conclusion 116
 
Chapter 9 Risk Culture and Ethics: Can You Have Excellence and Consistency at the Same Time? 121
 
The Advisor-Customer Encounter 124
 
Control Systems, Discretion, and Ethics 127
 
Culture, Ethics, Performance, and Risk Management 135
 
Chapter 10 The Top of the Pyramid: The CEO as Integrator of Strategy and Risk and the Board as the Fourth Line of Defense 141
 
The CEO: The Operational Integration of Strategy and Risk 145
 
The Board: The Governance Integration of Strategy and Risk 145
 
The Board Provides More Than Oversight 146
 
Epilogue: Decision-Making at the Restaurant: Creating and Executing a Risk-Aware Strategy 151
 
Appendix I: Risk Transformation and the Need for an Integrated Risk Approach 157
 
Appendix II: Resiliency 161
 
Bibliography 167
 
Index 183

About the author

DR. JAMES L. DARROCH is currently CIT Chair in Financial Services, Schulich School of Business, York University and Associate Professor, Policy, Schulich School of Business, York University. James is a sought-after expert in strategy and financial services education. In 2017, James and his co-author Patricia Meredith won the distinguished Donner Prize (award for the best public policy book by a Canadian) for Stumbling Giants: Transforming Canada's Banks for the Information Age.
DAVID WM. FINNIE is a senior corporate executive with over 20 years' experience leading large and mid-sized multinationals and Fortune 100 companies in the building and optimization of their financial, capital, and risk management strategies and capabilities. In addition to risk management expertise, he also offers strengths as a strategic business leader helping to define and implement business growth strategies and drive new business development. David has published four short articles on risk management, governance, and strategy.

Summary

Discover the interplay between strategy and risk in this insightful new resource from two experts in the financial industry who have applied their knowledge to multiple industries

In The Two Headed Coin, accomplished authors James L. Darroch and David Wm. Finnie deliver an insightful exploration of the interplay between strategy and risk that underlies the operational framework of successful organizations. You'll learn which risks are fundamental to the strategic positioning and goals of your organization and which are not. You'll also discover the importance of an independent risk function, e,g., the CRO, and its invaluable role as part of the strategic process.

You'll also find:
* A thorough discussion of the notion of competitive advantage and how it relates to risk
* An exploration of consumer perception and reputation as an asset to be managed
* How to use scenario planning and real options to provide a framework for managing uncertainty
* How a focus on culture and ethics can minimize the risk of large losses due to adverse behaviors

Perfect for risk management and strategy professionals The Two Headed Coin will also earn a place in the libraries of executives and managers who wish to improve their ability to integrate strategic and risk thinking to create competitive advantage.

Product details

• Authors: James Darroch, James L Darroch, James L. Darroch, James L. Finnie Darroch, Jl Darroch, Darroch James L., David W M Finnie, David W. Finnie, David W. M. Finnie, David Wm Finnie, David Wm. Finnie, David Wm. Darroch Finnie
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 31.05.2021
• EAN: 9781119794202
• ISBN: 978-1-119-79420-2
• No. of pages: 224
• Series: Wiley Finance; Wiley Finance Editions
• Subjects: Social sciences, law, business > Business > Business administration; Finanzwesen, Allg. Finanz- u. Anlagewesen, Finance & Investments, Finanz- u. Anlagewesen