Benefits of Enterprise Risk Management:
A string of large and highly public organizational and Governmental failures over the past 10 years (Woolworths, Golden Wonder, Northern Rock, Citigroup, Enron and even the entire banking system of Iceland) has focused the attention of investors, customers and regulators on the way in which directors, managers and boards are managing risk. This has led to a greater appreciation of the wider scope of risks facing organizations, which in turn has led to risk management becoming a core management discipline. Risk is everywhere and derives directly from unpredictability. The process of identifying, assessing and managing risks brings any business full circle back to its strategic objectives: for it will be clear that not everything can be controlled.
The local consequences of events on a global scale, such as terrorism, pandemics and credit crunches, are likely to be unpredictable. However, they can also include the creation of new and valuable opportunities. Many of today’s household names were born out of times of adversity. Risk management provides a framework for organizations to deal with and to react to uncertainty. Whilst it acknowledges that nothing in life is certain, the modern practice of risk management is a systematic and comprehensive approach, drawing on transferable tools and techniques. These basic principles are sector-independent and should improve business resilience, increase predictability and contribute to improved returns. This is particularly important given the pace of change of life today. Risk management involves a healthy dose of both common sense and strategic awareness, coupled with an intimate knowledge of the business, an enquiring mind and most critically superb communication and infl uencing skills. The Institute of Risk Management’s International Certifi cate in risk management is an introductory qualifi cation which refl ects the changing and global nature of risk management.
Recognizing both the enterprise-wide (or ‘ERM’) importance of comprehensive risk management and the growing use of international standards (such as ISO 31000), this qualifi cation equips future professional risk managers with the fundamental knowledge and tools to make invaluable contributions to long-term organizational growth and prosperity. This textbook, as well as being the core reading for the IRM International Certifi cate, is a valuable resource for all organizations and indeed anyone with an interest in risk management. Sophie Williams is Deputy Chief Executive of the Institute of Risk Management, risk management’s leading worldwide professional education, training and knowledge body. Further information about the International Certifi cate or the Institute is available from the IRM website www.theirm.org.
Acknowledgements for the Risk Management pdf books Download Free
The author is grateful to a large number of people who have helped with the development of the ideas that are included in this book. In particular, the following individuals provided considerable input into the fi nal version:
- Richard Archer;
- Bill Aujla;
- Steve Fowler;
- Alex Hindson;
- Edward Sankey;
- Paul Taylor;
- Carolyn Williams;
- Sophie Williams.
Author: Paul Hopkin