Index
Public Sector Leadership in Assessing and Addressing Risk
ISBN: 978-1-80117-947-8, eISBN: 978-1-80117-946-1
Publication date: 4 April 2022
This content is currently only available as a PDF
Citation
(2022), "Index", Young, P.C., Grima, S. and Dalli Gonzi, R. (Ed.) Public Sector Leadership in Assessing and Addressing Risk (Emerald Studies in Finance, Insurance, and Risk Management), Emerald Publishing Limited, Leeds, pp. 239-246. https://doi.org/10.1108/978-1-80117-946-120221028
Publisher
:Emerald Publishing Limited
Copyright © 2022 Peter C. Young, Simon Grima and Rebecca Dalli Gonzi
INDEX
Accountability
, 39, 98, 228
Active ‘horizon scanning’
, 116
Adaptation
, 5, 98, 119–120, 208
Adaptive decision-making models
, 114, 116
Adaptive response (AR)
, 70, 146–148
control tools
, 148–159
mandated risk control
, 159–160
Adjustment heuristic
, 15
Administration
, 29
Agency liability
, 137
Agility
, 41, 110
Agreements
, 81
Aleatory contracts
, 181
Analogous reasoning
, 103
Analogous thinking
, 102, 204
Analysis basics
, 89
uncertainty chain
, 89–92
Anchor heuristic
, 15
Artificial intelligence (AI)
, 113, 124, 153, 210
Assessment and analysis
, 69–70, 97–99
with COCAs
, 80–83
environmental sources of risk and uncertainty
, 83–84
exposures to risk
, 86–87
financial asset exposures
, 127–130
framework
, 80
hazards and risk factors/perils and opportunities
, 85
human asset exposures
, 131–132
identification tools and techniques
, 87–89
legal responsibility
, 132–137
moral responsibility
, 137–140
physical asset exposures
, 125–127
risk leader
, 103
risk management
, 103–104
risk measurement
, 92–97
strategic management process
, 104–106
strategic process risks
, 106–113
strategy formulation
, 103–104
sustainable resilience
, 113–121
uncertainty
, 102–103
Assets
, 40
financial
, 96, 128
physical
, 126, 128
Association of Governmental Risk and Insurance Pools (AGRIP)
, 48
Availability heuristic
, 15
Aviation liability
, 192
Avoidance
, 149–150
Behavioural psychology
, 198–199
Benchmarking/best practices
, 88–89
Bias
, 200
Black Swan phenomenon
, 111–112
Boiler and machinery insurance
, 191
‘Bottom-up’ mental process
, 14
Brokers
, 186
Budget cycle
, 31
Capabilities
, 40–41
Capacity for self-organisation
, 115
Cause-of-loss type
, 126
Caux Round Table (CRT)
, 234
Certainty
, 9
Certificates of insurance
, 151
Chaos theory
, 4
Characteristics
of insurance contracts
, 180–182
of insurance industry
, 182, 184
Chief risk officer (CRO)
, 51
Citizen forums
, 89
Civil law
, 132–133
Classification rating
, 169
Climate change
, 4
Climate risks
, 110
Coefficient of variation
, 7–8
Cognitive environment
, 84
Cognitive risk
, 14, 198, 200–202
Collaborative risk management
, 48, 233
Collective perception
, 16
Combined ratio
, 188
Commitment
, 81
Committee of Sponsoring Organizations of the Treadway Commission (COSO)
, 51
Common law
, 132–133
Communication
, 116
Community risk management
, 45
Compensation principle
, 212
Competencies
, 40
Complex adaptive systems (CAS)
, 4–5, 81, 107, 208, 226
key feature
, 98
networks
, 227
Complex systems
, 4
Complexity
, 4–6, 26
research on
, 5
theory
, 4–5
Conditional contracts
, 181–182
Consequence link
, 90, 92
Consultancy services
, 89
Context
, 68–69
Continuity
, 31
Contract law
, 135
Contracts
, 80
of adhesion
, 181–182
of indemnity
, 181
of utmost good faith
, 181
Contracts, obligations, commitments, and agreements (COCAs)
, 12–13, 80–81, 126, 147
assessment and analysis with
, 80–83
organisation idea
, 150
uncertainty field, and sources
, 84
Core competency
, 71
Corporate family
, 167
Cost
and benefits measurement
, 203
cost/benefit analysis
, 211–216
of financing options
, 173
of risk
, 93
Council’s method
, 35–36
Creativity
, 115
Cultures
, 16
Cyber risks
, 130
Cyber-crime
, 130
DALI model
, 108–109, 207
allocating cost burden
, 216
cost/benefit analysis
, 211–216
efficient use of resources to meet public sector needs
, 208–209
standards for public sector service response
, 209–211
Data credibility
, 202
Decision-making
, 198
analytical frameworks
, 203–207
common features of risk management problems
, 201–203
DALI model
, 207–217
principle
, 29
Declarations
, 182
Degree of control over risk
, 173
Demutualisation
, 185
Derivative value
, 128
Derivatives
, 166
Direct selling
, 186
Directivity
, 41
Disability and poor health
, 131
Disaster planning and management
, 155–156
Distribution
, 150–152
systems
, 186
Dunning-Kruger effect
, 111–113
Economic environment
, 84
Elected officials liability
, 136
Emergent phenomena
, 9–11
Emergent risks
, 111
Emotional identity
, 18
Employment liability
, 137
Enterprise risk management (ERM)
, 44, 51–55, 66, 68, 97, 224
Environment link
, 89
Environmental impairment liability (EI liability)
, 136, 191–192
Environmental mapping
, 85
Environmental scans
, 87
Environmental sources of risk and uncertainty
, 83–84
Espoused values
, 138
Ethical risk management
, 234–235
European Institute for Risk Management (EIRM)
, 48
European Union (EU)
, 18, 26
project
, 27
relations
, 132
Excess liability insurance
, 192
Exclusions of contracts
, 182
Existential risks
, 110
Expense ratio
, 183, 188
Experience rated insurance
, 169–170
Exposures
, 12, 82
link
, 90
to risk
, 86–87
in uncertainty field
, 86
Externalities
, 202
Federation of European Risk Management Associations (FERMA)
, 56–57
Fiduciary liability
, 136
Financial assessment of insurers
, 187–189
Financial asset exposures
, 87, 127
cyber risks
, 130
derivative value
, 128
nature of exposure
, 128–129
valuation
, 129–130
Financial documentation
, 88
Financial processes
, 31
Financial risk management
, 49, 166
First-order risk
, 106
Flexibility
, 41
Forgetting
, 15
Formal budget process
, 31
Framing
, 16
Functional levels of risk and uncertainty
, 13–14
Futures contracts
, 171–172
Fuzziness
, 8
General liability insurance
, 191
General security
, 110
Global risks
, 109–111
Governance
, 34–35, 39
activities of
, 155
function
, 213
in public sector
, 19
risk
, 222
Government failure
, 20
Group life
, 185
Guaranteed cost insurance
, 169
Guaranty funds
, 187
Hazard/risk factor link
, 89
Hazards
, 12, 85
Heuristic
, 15
Human asset exposures
, 87, 131–132
Human dignity
, 234
Human perceptions
, 198–199
Identification
, 70
sources of information
, 87–89
tools and techniques
, 87
Inclusive participation
, 116
Indemnification
, 166
Industry regulation
, 186–187
Information Technology (IT)
, 71
Innovation
, 5, 115
in public risk management
, 47–48
Insurable interest
, 128
Insurable risks
, 189–190
management
, 49
Insurance
, 14, 150, 164, 166, 178
alternative perspectives
, 190
buying
, 48–49
companies
, 185
conceptual influences
, 189–190
distribution systems
, 186
evolving industry
, 185
financial assessment of insurers
, 187–189
financial basis
, 179–180
industry regulation
, 186–187
industry structure
, 185–186
institutional aspects
, 185–189
law and regulation
, 167
management
, 62
nature of consideration
, 178–179
performance
, 179
practical influences
, 190
pricing
, 184
and public organisation risk management
, 189–193
public organisation’s insurance portfolio
, 190–193
risk transfer
, 178
self-insurance
, 172
Insurance contract
, 180
contract structure
, 182
distinct area of law
, 180
legal characteristics of insurance
, 180–182
pricing of insurance
, 182–184
Insurance-buyer
, 49
Insuring agreement
, 182
Intentional torts
, 134
Interconnectivity
, 110
Interdependencies
, 202
Interests
, 36
type
, 126–127
International Organization for Standardization (ISO)
, 51, 66
International Risk Governance Council (IRGC)
, 33–35, 38–40, 55
Interruption and extra expense insurance
, 191
Interviews
, 88
Irish Public Bodies
, 47–48
ISO 31000
, 66–68, 82
Kaldor-Hicks criterion
, 212
Knowledge
, 40
quadrant
, 11
KommuneForsikring
, 48
Kyosei
, 234
Law enforcement liability insurance
, 191
Law of large numbers
, 168
Leadership
, 4, 35, 220
bad
, 138–139
ethical
, 138
Legal documentation
, 88
Legal enforceability
, 37
Legal environment
, 84
Legal liability exposures
, 87
Legal responsibility
, 132
civil law
, 132–133
common law
, 132–133
contract law
, 135
legal liability problems and issues
, 133–134
legal systems of law
, 133
specific legal exposures
, 135–137
tort law
, 134–135
Life segment
, 185
Lloyd’s market
, 185–186
Local governmental bodies, risk management in
, 74–75
Local rules
, 5
London Market
, 186
Long-term game
, 64
Loss
portfolio transfers
, 184
prevention
, 153–154
ratio
, 183, 187
reduction
, 155–157
type
, 126
Managerial facet of public sector risk management
, 44–46
Mandated risk control
, 159–160
Maximisation game
, 39
Measurable uncertainty
, 7
Mission clarification
, 68–69
Modernisation
, 27, 30
Modularity
, 114
Monitoring system health
, 114
Moral enforceability
, 37
Moral hazard
, 159, 180, 221
Moral liability exposures
, 87
Moral responsibility, 137–140 (see also Legal responsibility)
Motor vehicle
insurance
, 191
liability
, 137
Multi-agent systems
, 4
Multi-entity risk management
, 48
Multilateral governance
, 34
Municipal Mutual Insurance
, 47–48
Mutuals
, 180, 185
National Association of Insurance Commissioners (NAIC)
, 165
National Flood Insurance Program
, 160
National Resilience assessment tool
, 63
Neustadt–May framework
, 203–207
Neutralisation
, 157, 170–172
Noise
, 200
Non-criminal law
, 133
Non-life segment
, 185
Objective uncertainty
, 6
Obligations
, 81
Old age and retirement
, 131
On-site inspections
, 88
Openness
, 33
value of
, 30
Operational environment
, 84
Operations management
, 65
Opportunity
, 12, 85
cost
, 173–174
Optimising game
, 39
Options contracts
, 171–172
Organisational capacity to meet governance requirements
, 39–41
Organisational integration
, 41
Organisational risks
, 18
Origin myths
, 16–17
Outcome link
, 90, 92
Overconfidence
, 16
Pareto optimality
, 212
Payment or reimbursement of losses
, 164
Perception of risk and uncertainty
, 14–17
Performance enhancement
, 221
Perils
, 12, 85
peril/opportunity link
, 90–92
Physical asset
exposures
, 86, 125–127
type
, 126
Physical environment
, 83
Players
, 27–29
Playing field
, 27–29
Political cycle
, 30–31
Political environment
, 84
Politics
, 29
Pollution
, 19
Pooling
, 48
of resources
, 179
of risk
, 179
Pools
, 48
Poverty
, 132
Predictable surprises
, 9
Premature death
, 131
Premises liability
, 136
Premium-to-surplus ratio
, 188
Pricing of insurance
, 182–184
Primary stakeholders
, 37
Probability distribution
, 7
Productivity
, 132
Products and services liability
, 136
Professional liability
, 136
insurance
, 192
Programme administration
, 71–72
Property insurance
, 191
Proprietary function
, 213
Public administration
, 32
Public administrators
, 29–30
Public budgeting
, 31
Public economics
, 19–20
Public entity
, 80
Public nuisance liability
, 136
Public officials liability insurance
, 191
Public organisation risk management (PORM)
, 62, 64, 72–73, 80
applications in wider public settings
, 73–74
elements
, 68–72
idea
, 66
insurance and
, 189–193
ISO 31000
, 66–68
risk management in local governmental bodies
, 74–75
Public organisations
, 32–33
Public risk governance
, 33
governance, goals, and purposes
, 39
meaning
, 34–35
organisational capacity to meet governance requirements
, 39–41
risk governance
, 35–36
stakeholder relations framework
, 36–38
Public risk management
history of
, 46–47
implications for
, 32–33
innovation in
, 47–48
Public risks
, 13, 17–20
Public safety challenge
, 45
Public sector
, 17–19
Public sector environment
, 26
attributes of public sector environment and institutions
, 26–33
Public sector risk management, three facets of
, 44–46
Publicness
, 17–18, 26, 28
Pure premium
, 183
Pure risks/uncertainties
, 11
Quality/value of services
, 173
Reactivity
, 41
Recovery
, 116, 149
Redundancy
, 114–115, 149
Reflexivity
, 159, 221
Regulatory facet of public sector risk management
, 44–46
Reinsurance
, 184, 189
Reporting
, 118–119
Representative heuristic
, 15
Resilience, 41, 113–114 (see also Sustainable resilience)
components of
, 114–116
Resource(s)
, 40
holders
, 80
pooling
, 157
Resourcefulness
, 115, 149
Response
, 115–116
Responsive regulatory feedback mechanisms
, 116
Responsiveness
, 41, 149
Retention
, 172–174
Retention/transfer demarcation line
, 167–168
Retrospectively rated insurance
, 170
Revenue flows
, 129
Risk
, 7–9, 138
assumption
, 157–158
categories
, 11
communication
, 227
compensation
, 158–159
competence
, 35, 98, 226, 229–231
components
, 12
conversance
, 229–230
culture
, 223
elements
, 10
environmental sources
, 83–84
exposures
, 86–87
factors
, 12, 85
functional levels
, 13–14
governance
, 35–36, 55–56, 222
migration
, 158
neutralisation
, 157, 170–172
perception
, 14–17
pooling
, 52, 157
retention
, 165–166
and risk management scene in Europe
, 56
surveying scene
, 56–59
transfer
, 150, 165–166, 178
Risk financing
, 70–71, 164–165
framework
, 165–168
general observations on
, 174–175
methods
, 168–175
traditional categories
, 165
Risk leaders/leadership
, 53–56, 98, 103, 222
positioning
, 224–226
Risk management
, 19–21, 63, 65, 103–104
common features of risk management problems
, 201–203
core competency
, 71
ethical risk management
, 234–235
historic foundations
, 50–51
in local governmental bodies
, 74–75
monitoring and reviewing
, 233–234
organising for action
, 226–229
purpose of
, 62–64
risk competence
, 229–231
risk leadership/risk leaders
, 222–226
services
, 48
in small governments and communities
, 232–233
social and community contexts
, 233
sustainable resilience
, 220–222
Risk manager
, 49
risk manager/leader’s sensibility
, 206
Risk measurement
, 92
dimensions of exposure to risk
, 94–95
frequency and magnitude measurement terminology
, 96–97
hidden costs/benefits of losses and gains
, 93
Risk/uncertainty
matrix
, 95
reduction
, 152–153
Robustness
, 114, 149
Rules, norms, and regulations
, 40
Sale/lease-back strategy
, 151
Satisficing
, 13
game
, 39
Schema
, 5, 231
Second-order risk
, 106
Secondary stakeholders
, 37
Self-insurance
, 172
Self-organisation
, 4
Separation of powers
, 29–30
Short selling strategies
, 128
Short-termism
, 31–32
Skills
, 40–41
Smart cities
, 46
Social cultures
, 16
Social environment
, 84
Social risks
, 18, 110
Special events liability insurance
, 192
Speculative risks/uncertainties
, 11
Stability
, 129
Stakeholder relations framework
, 36–38
Statistical analysis
, 88
Stewardship facet of public sector risk management
, 44–46
Strategic management
, 65
process
, 104–106
Strategic process risks
, 106
Black Swan phenomenon
, 111–112
DALI model
, 108–109
Dunning-Kruger effect
, 112–113
strategic risks
, 109–111
Strategic risk management
, 106
Strategy formulation
, 103–104
Subconscious perceptual process
, 14
Subsidiarity
, 28–29
Sustainability
, 117–118
Sustainable resilience
, 69, 113, 148–149, 220–222
complexity and assessing, analysing, and reporting
, 119–121
components of resilience
, 114–116
reporting
, 118–119
resilience
, 113–114
sustainability
, 117–118
Systems theory
, 4
Tax issue
, 174
Technical complexity
, 37
Technical risk management
, 48–50
functions
, 51
Technical risk manager tasks
, 49
Teleopathy
, 138, 235
Texture
, 7–8
Three facets of public sector risk management
, 44–46
Time, externalities, data, interdependence, uncertainty, measurement (TEDIUM)
, 201
Time horizons
, 201
Timing risk
, 166
Tort law
, 134–135
Traditional risk manager tasks
, 49
Transfers
, 150–152, 168–170
Transparency
, 30, 33
Umbrella liability insurance
, 192
Unanimity principle
, 212
Uncertainty
, 6, 102–103, 152
categories
, 11
chain
, 89–92, 153
components
, 12
cost-allocation systems
, 231
elements
, 10
environmental sources
, 83–84
field
, 12–13, 56
functional levels
, 13–14
measurable
, 7
perception
, 14–17
recognition
, 202–203
Smith’s four levels
, 7
Unemployment
, 131
Unknowable
, 9–11
Unknown
, 9–11
Valuation
, 129–130
Values-in-action
, 138
Vision
, 41
Whistleblowing
, 139
‘Workers’ compensation/employers’ liability insurance
, 192
World Economic Forum (WEF)
, 113
- Prelims
- Section One: Context
- Chapter One: Our Complex World
- Chapter Two: The Public Sector Environment
- Chapter Three: History and Current Context
- Chapter Four: Public Organisation Risk Management
- Section Two: Assessment and Analysis
- Chapter Five: Assessment and Analysis I
- Chapter Six: Assessment and Analysis II
- Chapter Seven: Assessment and Analysis III
- Section Three: Tools, Applications, Responses
- Chapter Eight: Methods, Tools, and Techniques: Adaptive Response Measures
- Chapter Nine: Risk Financing
- Chapter Ten: Insurance and Alternatives
- Section Four: Leading and Managing in an Uncertain World
- Chapter Eleven: Making Decisions
- Chapter Twelve: Making Risk Management Work
- Index