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Corporate Risk Management: An Organisational Perspective

Corporate Risk Management: An Organisational Perspective

Tony Merna, Faisal F. Al-Thani

ISBN: 978-0-470-01588-9

Jul 2005

270 pages

Select type: E-Book



Corporate Risk Management analyses, compares and contrasts tools and techniques used in risk management at corporate, strategic business and project level and develops a risk management mechanism for the sequencing of risk assessment through corporate, strategic and project stages of an investment in order to meet the requirements of the 1999 Turnbull report.  

By classifying and categorising risk within these levels, readers will learn how to drill down and roll-up to any level of the organisational structure, establish the risks that each project is most sensitive to, and implement the appropriate risk response strategy - to the benefit of all stakeholders.

1 Introduction.

1.1 Introduction.

1.2 Why Managing Risk Is Important.

1.3 General Definition of Risk Management.

1.4 Background and Structure.

1.5 Aim.

1.6 Scope of the Book.

2 The Concept of Risk and Uncertainty and the Sources and Types of Risk.

2.1 Introduction.

2.2 Background.

2.3 Risk and Uncertainty: Basic Concepts and General Principles.

2.4 The Origin of Risk.

2.5 Uncertainties.

2.6 Sources of Risk.

2.7 Typical Risks.

2.8 Perceptions of Risk.

2.9 Stakeholders in an Investment.

2.10 Summary.

3 The Evolution of Risk Management and the Risk Management Process.

3.1 Introduction.

3.2 The Evolution of Risk Management.

3.3 Risk Management.

3.4 The Risk Management Process – Identification, Analysis and Response.

3.5 Embedding Risk Management into Your Organisation.

3.6 Risk Management Plan.

3.7 Executive Responsibility and Risk.

3.8 Summary.

4 Risk Management Tools and Techniques.

4.1 Introduction.

4.2 Definitions.

4.3 Risk Analysis Techniques.

4.4 Qualitative Techniques in Risk Management.

4.5 Quantitative Techniques in Risk Management.

4.6 Quantitative and Qualitative Risk Assessments.

4.7 Value Management.

4.8 Other Risk Management Techniques.

4.9 Country Risk Analysis.

4.10 Summary.

5 Financing Projects, Their Risks and Risk Modelling.

5.1 Introduction.

5.2 Corporate Finance.

5.3 Project Finance.

5.4 Financial Instruments.

5.5 Debt.

5.6 Mezzanine Finance Instruments.

5.7 Equity.

5.8 Financial Risks.

5.9 Non-financial Risks Affecting Project Finance.

5.10 Managing Financial Risks.

5.11 Risk Modelling.

5.12 Types of Risk Software.

5.13 Summary.

6 Portfolio Analysis and Cash Flows.

6.1 Introduction.

6.2 Selecting a Portfolio Strategy.

6.3 Constructing the Portfolio.

6.4 Portfolio of Cash Flows.

6.5 The Boston Matrix.

6.6 Scenario Analysis.

6.7 Diversification.

6.8 Portfolio Risk Management.

6.9 Cross-collateralisation.

6.10 Cash Flows.

6.11 An Example of Portfolio Modelling.

6.12 Summary.

7 Risk Management at Corporate Level.

7.1 Introduction.

7.2 Definitions.

7.3 The History of the Corporation.

7.4 Corporate Structure.

7.5 Corporate Management.

7.6 Corporate Functions.

7.7 Corporate Strategy.

7.8 Recognising Risks.

7.9 Specific Risks at Corporate Level.

7.10 The Chief Risk Officer.

7.11 How Risks Are Assessed at Corporate Level.

7.12 Corporate Risk Strategy.

7.13 Corporate Risk: An Overview.

7.14 The Future of Corporate Risk.

7.15 Summary.

8 Risk Management at Strategic Business Level.

8.1 Introduction.

8.2 Definitions.

8.3 Business Formation.

8.4 Strategic Business Units.

8.5 Business Strategy.

8.6 Strategic Planning.

8.7 Recognising Risks.

8.8 Portfolio Theory.

8.9 Programme Management.

8.10 Business Risk Strategy.

8.11 Tools at Strategic Business Unit Level.

8.12 Strategic Business Risk: An Overview.

8.13 Summary.

9 Risk Management at Project Level.

9.1 Introduction.

9.2 The History of Project Management.

9.3 Definitions.

9.4 Project Management Functions.

9.5 Project Strategy Analysis.

9.6 Why Project Risk Management Is Used.

9.7 Recognising Risks.

9.8 Project Risk Strategy.

9.9 The Future of Project Risk Management.

9.10 Summary.

10 Risk Management at Corporate, Strategic Business and Project Levels.

10.1 Introduction.

10.2 Risk Management.

10.3 The Risk Management Process.

10.4 Common Approaches to Risk Management by Organisations.

10.5 Model for Risk Management at Corporate, Strategic Business and Project Levels.

10.6 Summary.