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Managing Financial Risk and Its Interaction with Enterprise Risk Management

Managing Financial Risk and Its Interaction with Enterprise Risk Management

Daniel A. Rogers

ISBN: 978-0-470-95236-8

Dec 2010

21 pages

Select type: E-Book



This chapter first discusses financial risk management from a broad perspective, including possible definitions and examples of industry applications of financial hedging. The discussion then moves to a basic review of the theoretical rationales for managing (financial) risk and the related empirical findings.

The potential for the interaction of financial hedging with other areas of risk management (such as operational and strategic) is then explored. Finally, there is a discussion regarding the lessons that can be applied to Enterprise Risk Management from the knowledge base about financial hedging.

Foreword by Robert S. Kaplan.

Part I: Overview.

Chapter One: Enterprise Risk Management: An Introduction and Overview.

Chapter Two: A Brief History of Risk Management.

Chapter Three: ERM and Its Role in Strategic Planning and Strategy Execution.

Chapter Four: The Role of the Board of Directors and Senior Management in Enterprise Risk Management.

Part II: ERM Management, Culture and Control.

Chapter Five: Becoming the Lamp Bearer: The Emerging Roles of the Chief Risk Officer.

Chapter Six: Creating A Risk Aware Culture.

Chapter Seven: ERM Frameworks.

Chapter Eight: Identifying and Communicating Key Risk Indicators.

Part III: ERM Tools and Techniques.

Chapter Nine: How to Create and Use Corporate Risk Tolerance.

Chapter Ten: How to Plan and Run a Risk Management Workshop.

Chapter Eleven: How to Prepare a Risk Profile.

Chapter Twelve: How to Allocate Resources Based on Risk.

Chapter Thirteen: Quantitative Risk Assessment in ERM.

Part IV: Types of Risk.

Chapter Fourteen: Market Risk Management and Common Elements with Credit Risk Management.

Chapter Fifteen: Credit Risk Management.

Chapter Sixteen: Operational Risk Management Chapter.

Chapter Seventeen: Risk Management: Techniques in Search of a Strategy.

Chapter Eighteen: Managing Financial Risk and its Interaction with Enterprise Risk Management.

Chapter Nineteen: Bank Capital Regulation and Enterprise Risk Management.

Chapter Twenty: Legal Risk Post SOX and the Subprime Fiasco: Back to the Drawing Board.

Chapter Twenty One: Financial Reporting and Disclosure Risk Management.

Part V: Survey Evidence and Academic Research.

Chapter Twenty Two: Who Reads What Most Often? A Survey of Enterprise Risk Management Literature Read by Risk Executives.

Chapter Twenty Three: Academic Research on Enterprise Risk Management.

Chapter Twenty Four: Enterprise Risk Management: Lessons from the Field.

Part VI: Special Topics and Case Studies.

Chapter Twenty Five: Rating Agencies Impact on Enterprise Risk Management.

Chapter Twenty Six: Enterprise Risk Management: Current Initiatives and Issues.

Chapter Twenty Seven: Establishing ERM Systems in Emerging Countries.

Chapter Twenty Eight: The Rise and Evolution of the Chief Risk Officer: Enterprise Risk Management at Hydro One.



About the Authors.