The Handbook of Risk Management: Implementing a Post-Crisis Corporate Culture

This handbook shows a firm how to repurpose its risk management in order to design and implement a corporate culture which involves all business units and individuals at each level of the hierarchy, how to analyse its risk appetite, translate it into risk policies and risk targets and distribute responsibilities and capabilities accordingly. The book explains how to identify risk exposure across the enterprise; how to empower each business unit with risk management capabilities; how to create an information workflow for preventative decision making; how to align funding strategies and liquidity management tactics with corporate risk policies and finally, how to deal with risk management in external communications.

Book contents:

  1. Introduction: Risk is People's Business

  2. Identifying Risk Factors

  3. Working with Risk Factors

  4. Working with Scenarios

  5. From Aggregated Risks to Distributed Risks

  6. Creating an Adaptive Information Workflow

  7. Allocating Risk Management Capabilities

  8. Mitigation Strategies and Hedging Tactics

  9. Risk Independence or Indifference to Risk?

  10. Risk-Weighted Performance

  11. From Risk Appetite to Risk Policies

  12. Bottom-Up Activity Feedback

  13. Enterprise-Wide Aggregation

  14. Top-Down Decisions and Feedback

  15. Deriving a Firm’s Actual Observed Risk Appetite

  16. Liquidity, the Ultimate Operational Risk

  17. Analysing and Measuring Liquidity Risks

  18. Funding Risk

  19. Managing and Mitigating Liquidity Risks

  20. External Communications

  21. Enhancing Transparency

  22. Information Exchange for Risk Intelligence

  23. The Great Unwind

  24. Propositions for a Regulatory Upheaval