Read more
The book helps readers to answer a pressing question for businesses: how can they evaluate risks and opportunities to develop appropriate risk-adjusted strategies that allow them to generate maximum profit at acceptable risk levels?
This book focuses on a hands-on approach to risk management which includes a step-by-step guide on how to identify, analyze, quantify and aggregate various risks in organizations. It guides the reader through what-if simulation and scenario analyses as well as Monte Carlo simulations in Excel with applications to traditional non-financial businesses and platform companies like Spotify. This management-oriented perspective sets it apart from often compliance-related textbooks, which mostly focus on financial industries. Its approach is applicable to a wide range of industries and based on a strategic and value-based view of balancing risks and opportunities in businesses. The mathematical and technical details are presented in an easy-to-follow format and illustrated throughout with examples and simple calculations. Additional material for lecturers and students (exercises, cases, templates) is provided online.
List of contents
Risks, Opportunities, and Enterprise Risk Management.- Theories of Decision-Making Under Risk Heuristics and Biases in Enterprise Risk Management.- Methods of Decision-Making under Risk.- Risk Quantification, Risk Modelling, Risk Aggregation, and Model Risks.- Risk Metrics and Risk Measures.- Strategic Perspective on Enterprise Risk Management.- Operational Perspective on the ERM Process.- Strategy, Resilience, Robustness, Sustainability, and ERM.- Value-Based Management and Enterprise Risk Management.- Enterprise Risk Management and Business Planning.- Organizational Aspects of Enterprise Risk Management.- Case Studies: Risk Analysis, Company Valuation, and Strategy Valuation.
