Index
Jean-Paul Louisot
(JPLA Consultants LLC, France)
Enterprise Risk Management in Today's World: Enterprise-Wide Risk Management and Strategy, Part A
ISBN: 978-1-83797-407-8, eISBN: 978-1-83797-406-1
Publication date: 28 October 2024
This content is currently only available as a PDF
Citation
Louisot, J.-P. (2024), "Index", Grima, S. (Ed.) Enterprise Risk Management in Today's World: Enterprise-Wide Risk Management and Strategy, Part A (Emerald Studies in Finance, Insurance, and Risk Management), Emerald Publishing Limited, Leeds, pp. 225-232. https://doi.org/10.1108/978-1-83797-406-120241015
Publisher
:Emerald Publishing Limited
Copyright © 2024 Jean-Paul Louisot and Simon Grima
INDEX
Acceptable risks
, 29
Acceptance
, 73
Activity standard
, 84
Administration costs
, 162–163
Adolescents
, 210
AIG ReputationGuard
, 98
Allianz Reputation Protect in practice
, 98–99
Amarante
, 131
Analytics (see Business intelligence system (BIS))
Anchoring
, 192
Ancillary risks
, 84
Aon Corp.
, 99
Appetite
, 25
Audit of RM programme
, 40–41
Availability
, 192
Barings Bank
, 176
Basic return
, 146
Bayesian network approach
, 16, 147
Behavioural economics
, 190
Big data
, 91, 130
Bottom-up approach
, 50
Brain
, 43
Burson-Marsteller
, 98n17
Business analytics
, 135, 171
assistance to decision-making
, 171–172
enhancing communication
, 173
improving management efficiency
, 172
reducing uncertainties
, 172
Business continuity plan (BCP)
, 169
Business impact analysis (BIA)
, 26, 53, 72
Business intelligence, role and importance of
, 41–43
Business intelligence system (BIS)
, 41–42
Business model
, 68, 70
Business-to-business (B2B) sales
, 182
Captive Insurance Company
, 96–97
Captives
, 97–98
Casualty Actuarial Society (CAS)
, 202
Change fatigue
, 125–126
Change management
, 88–90, 104–105
objectives
, 101–103
Chief executive officer (CEO)
, 37, 61, 85, 139
Chief financial officer (CFO)
, 41, 82
Chief risk officer (CRO)
, 10, 56, 85, 88
Cindynics
, 33–34, 190, 202–203, 205
approach to COVID-19 pandemic
, 213–215
axioms
, 211–213
perspectives
, 213
sciences
, 33
situation
, 206
Citizen-consumers
, 102
Classic modelling tools
, 16
Clearly defined responsibilities
, 113
Cloud computing
, 130
Coach
, 85–86
Cognitive ability
, 197–199
Cognitive biases
, 120
Cognitive governance
, 190, 193–195
Cognitive Informatics Security (CogSec)
, 195
Cognitive risk
, 189–190
contextual model
, 194–197
contextual model of cognitive risk management framework
, 191–194
detection
, 197–199
field detection
, 198
framework
, 192–193
Cognitive science
, 202–203
Cold war
, 2
Communication efficiency
, 87
Communication matrix
, 86–87
Communication on risk
, 57–58
Compensation packages
, 13
Complacency prejudice
, 20
Complex adaptive systems (CASs)
, 183
Complex state
, 108
Complexity
, 175, 177
cost of
, 181–183
reduce–and redirect
, 180
in risk management
, 178
Complexity learning
challenges
, 184–185
process
, 183–184
ways to meet challenges of
, 185–186
Compliance
, 131, 133–134
complexity
, 180
functions
, 124
Compromise
, 43
Confirmation prejudice
, 20
Continuity plan
, 104
Continuous strategic process, managing uncertainty through
, 12–15
Contract
, 42–43
Contractual agreements
, 154
Coping with complexity, uncertainty and ambiguity in risk governance
, 186–188
Corporate governance (see Integrated organisational risk management)
Corporate social responsibility (CSR)
, 38, 54, 67, 86, 102, 139
Corporate Sustainability Reporting Directive (CSRD)
, 33
Corruption risks
, 4
COSO
, 202–203
ERM
, 193
Cost of complexity
, 181–183
Cost of risk
, 162–164
Cost/benefits analysis
, 112
COVID-19
crisis
, 1, 3
pandemic
, 5
Creative rupture
, 104
Crisis
, 1, 65, 107
Critical risks
, 72
analysing and evaluating risks to prioritise
, 71–73
monitoring
, 73–75
treating critical risk integrating priorities
, 73
Cuthbert Heath
, 91
Cyber-risks
, 4, 191
Cyber-security
, 81, 194
Cyber-Security Framework (CSF)
, 203
Dashboards
, 119–120
Data analytics
, 134
Data processing
, 34
Databank
, 170
Decision-makers
, 22, 146, 199
Decision-making
advantages of utilising headline risks
, 50–52
enhancing capacity to meet strategic goals and objectives
, 55–56
headline risks
, 50
improving performance
, 52–53
process
, 50
reducing volatility
, 53–55
‘strengthening leaders and all managers’ accountability
, 56–57
in uncertain future
, 20–22
Designed complexity
, 180
Diagnostic method (see Risk centre method)
Digital transformation
, 196
Directors
, 27–28, 142
Discounted cash flow (DCF)
, 11
Discrimination risks
, 5
Diversifiable risk (see Unsystematic risk)
Diversification principle
, 154
‘Dominate or perish’ concept
, 135
Domino effect
, 3
Dow Jones Sustainability™ World Index
, 139–140n1
Downstream resources
, 153
E-reputation
, 91
EBOLA outbreak in Africa
, 1
Ecological resilience
, 106–107
Economic crisis
, 109–110
Economic intelligence (EI)
, 74, 121, 131
as engine to bridge security and risk management
, 131–132
Economic media
, 52
Effective risk management practices (ERM)
, 94
Efficient frontier
, 85
Emerging risk
, 126
Engineering resilience
, 106–107
Enterprise risk management (ERM)
, 5, 10, 23, 37, 49, 67, 77, 83–84, 104, 112, 129, 139, 189
communication on risk
, 57–58
decision-making process
, 50–57
developing ERM objectives
, 70–71
emerging legal and regulatory issues concerning
, 75–76
findings of survey on reputation and
, 96–97
integrating ERM into strategy development process
, 68–70
ISO 31000:2018 standard and implications for
, 128–130
KRIs
, 62–64
managerial consensus and risk committee
, 58–62
‘stakeholders’ involvement and consent
, 64–66
Entropy
, 15
Ericsson
, 175–176
Error
, 19
Ethical acts
, 32–33
Ethics
, 32
Ethics, governance, and sustainability (ESG)
, 32–35
European Union (EU)
, 2, 57, 95
Executive risk committee at C-suite level
, 60
Expected reasonable loss (ERL)
, 164
Exposure
, 148–149
diagnosis of
, 164–165
diagnostic (risk assessment)
, 39
space of
, 151–153
Expression ‘management system’
, 141
Extended company
, 87
Extended organisation
, 53
Exxon
, 15
Exxon Valdez
, 101
Facilitator
, 85–86
Family systematic therapy
, 209–210
Federation of European Risk Management Associations (FERMA)
, 48
Financial analysts
, 52
Financial industry
, 95
Financial institutions
, 91
Financial Report Council (FRC)
, 110n3
Financial risks
, 80
Financial RM (FRM)
, 167
Finch Insurance Services
, 99
‘5 steps’ rule
, 42–43
Fraud risks
, 4
Free resources
, 155–156
Frugality
, 17
Fukushima Daiïchi accident
, 178
Fuzzy cognitive maps (CCF)
, 199–200
Fuzzy logic
, 184
cognitive maps in systems risk analysis
, 199–202
Fuzzy sets
, 200
Genetic Algorithm (GA)
, 200
Global interconnectedness
, 9–10
Globalisation of RM
, 147
Governance/Risk Management/Compliance (GRC Triangle)
, 42, 127–128
to SRC
, 134–135
Grandes Ecoles
, 18
Green Philosophy
, 15
Harassment risks
, 5
Hazard risks
, 80
Hazard study
, 206
Headline risks
, 50
advantages of utilising
, 50–52
Hebbian Learning Rule-Based Methods
, 200
High-technology environment
, 9
Holistic approach
, 33
Human behaviour
, 7
Human knowledge
, 201
Human resources (HR)
, 186
Human rights risks
, 4–5
Hurricane Katrina
, 95–96
Hyperspace of danger model
, 1, 15, 190, 203, 208
IBM
, 15
Individual complexity
, 177
Information technology (IT)
, 7, 26, 40, 56, 106, 170, 193
Inherent complexity
, 180
Institute of Internal Auditors (IIA)
, 40, 61
Institute of Risk Management (IRM)
, 25n2
Institutional complexity
, 177
Institutional diversity
, 187
Insurable risk
, 148
Insurance Development Forum (IDF)
, 46n2
Integrated organisational risk management
, 139
Integration in strategy development process
, 81–84
InterContinental Hotels Group (IHG)
, 142
Internal communication team
, 66
International Association of Insurance Supervisors (IAIS)
, 93
International Insurance Society (IIS)
, 46n2, 90
Investments
, 10
Involuntary human peril
, 160
ISO 31000
, 193
ISO 31000:2018 standard and implications for ERM
, 128–130
Iterative ERM process
, 87
Keep it simple (KISS)
, 90
Key Performance Indicators (KPI)
, 27, 62, 84
Key Risk Indicators (KRI)
, 27, 62
definition and function of
, 62–64
Killer risks (see Headline risks)
Knowledge management
, 150
Kodak
, 20
Lateral resources
, 153
Leadership involvement
, 112
Learning algorithms
, 201
Line management
, 28
Line of defence
, 68–69
Lloyds
, 91
‘Local authorities’ specificity
, 44–48
Local communities
, 102
Lockdowns
, 6
Logistic network RM
, 53
Long-term resilience
, 12
Loss control costs
, 163
Low-cost leadership
, 82
Mad cow disease
, 1–2
Managerial consensus
, 58–62
Market globalisation
, 153
‘Market to meet actors’ expectations
, 132–133
Maximum possible loss (MPL)
, 164
MERS
, 6
Metrics to measure performances
, 84–85
Middle managers
, 56
Minimum plate-forms
, 209
Mission statement
, 10n1
Modern slavery risks
, 4–5
Multi-level governance system
, 187
National Health System (NHS)
, 2
New reality
, 1
NIST
, 193
Non-diversifiable risk (see Systematic risk)
Nongovernmental organisations (NGOs)
, 50, 67, 180, 193
Objectives register
, 112
Openness
, 17
Operational risks
, 80, 147
committee
, 60–62
Opportunities
, 146
Opportunities and threats (OT)
, 62
Optimisation/exploitation
, 73, 84
Organisation for Economic Cooperation and Development (OECD)
, 13
Organisational framework
, 85–88
Organisations
, 5, 31–32, 142, 149–150
Pandemics
, 2, 194
Paris Agreement
, 46
Partner’s choice
, 42
‘Partners’ resources
, 153–155
Perils
, 148–149, 156–160
Personality
, 17
Porter Novelli
, 98–99n18
Post-event objectives
, 161–162
Pre-event objectives
, 162
Pre-event resilience
, 107
Prejudices
, 21
Primary damages
, 149
Private life risks
, 5
Proactive resilience (see Ecological resilience)
Probabilistic risk analysis
, 116
Probability distribution
, 157
Procurement systems
, 53, 153
Propaedeutics
, 22
Psychological wordplay
, 148
Public relations (PR)
, 99
Public vigilance
, 7
Pure risks
, 77, 80
Quantile-based methods for prediction (QBRM)
, 167
Quantitative Risk Analysis (QRA)
, 115
circular process
, 115
dashboards
, 119–120
identify and develop forecasts for organisation
, 119
implement analysis in departments in organisation
, 119
iterative process
, 121
monitoring and review processes
, 120
quick pre-study
, 117
risk diagnostic
, 118
risk register
, 118–119
top management engagement
, 116–117
training analysis facilitator
, 118
Questionnaires
, 51
Reactive resilience (see Engineering resilience)
Recursive ERM process
, 87
Red Cross
, 53–54
Reduction
, 73
Regulatory turmoil
, 123–124
Representativeness
, 192
Reputation
, 64, 90
consensus
, 90–93
in financial sector
, 93–96
findings of survey on reputation and ERM
, 96–97
‘innovation needed to boost insurers’ profits
, 99–100
insured search for reputation loss coverage
, 97–99
to sustainable development
, 97
Residual composite risk acceptability
, 113
Residual risk
, 28–29
Resilience
, 7, 15, 101, 103–104
differing visions
, 105–107
engineering vs. ecological
, 106–107
risks and
, 107
and standards
, 106
Resources
, 149–153
allocation optimisation
, 114
Result standard
, 84
Retention risk financing costs
, 163
Rigorous risk diagnostic process
, 113
RIMS ERM Summit
, 15–16
Risk appetite
, 23, 30
operational level
, 26–30
statement
, 28
strategic level
, 25–26
tactical level
, 26
Risk committee
, 28, 38, 58–62
of board of directors
, 59–60
Risk management (RM)
, 1, 23, 37, 51, 67, 88–90, 101, 109, 121, 133–134, 146
analysing and evaluating risks to prioritise critical risks
, 71–73
approach
, 84
appropriate response to disturbance levels
, 107–108
change fatigue
, 125–126
contrasting RM objectives
, 101–103
developing ERM objectives
, 70–71
differing visions of resilience
, 105–107
domino effect
, 3
economic crisis and
, 109–110
EI as engine to bridge security and risk management
, 131–132
emerging legal and regulatory issues concerning ERM
, 75–76
evolution and explosion and change management
, 104–105
global impact
, 3–7
GRC to SRC
, 134–135
GRC Triangle
, 127–128
increasing complexity creates challenges for
, 179–180
integrating ERM into strategy development process
, 68–70
ISO 31000:2018 standard and implications for ERM
, 128–130
‘local authorities’ specificity
, 44–48
‘market to meet actors’ expectations
, 132–133
monitoring critical risk
, 73–75
objectives
, 160
‘optimising organisation’s performance in uncertain future
, 121–123
post-event objectives
, 161–162
pre-event objectives
, 162
process
, 39–41
project complexity and
, 181
projects and change
, 127, 135
QRA
, 115–121
rapidly changing world
, 136–137
regulatory turmoil
, 123–124
risk universe
, 123–125
role and importance of business intelligence
, 41–43
secondary objectives
, 162
security management, risk management, compliance, and value creation
, 133–134
short history
, 30–32
strategic decision-making processes
, 67–68
strategy
, 37–38
strategy and risk management in complex and fast-evolving world
, 130–131
structural issue for
, 110–112
three lines of defence to five lines of assurance
, 112–114
tick-box exercise
, 137
treating critical risk integrating priorities
, 73
Risk management information system (RMIS)
, 41, 170
Risk treatment
, 40
optimisation
, 114
options
, 113
Risks
, 1, 3, 49, 122–123, 147–149
analyse and assess
, 165–167
assessments
, 37, 51
assurance
, 48
aversion
, 197–199
centre method
, 56, 145, 167–169
conscience
, 34
culture
, 38
evaluation
, 28
financing
, 80, 160
governance
, 27, 187
and insurance management community
, 5
intelligence
, 41
managers
, 5–6, 85, 110–111, 150
map
, 169–171
matrix
, 169–171
object
, 148
on objectives
, 3
on operational resilience and continuity
, 3–4
to organisation culture and control
, 4
‘partners’ resources
, 153–155
perception
, 23–30
premiums
, 25, 146
reduction
, 80
register
, 38, 118–119
to reputation
, 81
and resilience
, 107
risk-averse managers
, 12
risk-owners
, 104, 147
risk-taking
, 141
taxonomy
, 77–81
universe
, 123–125
Royal Bank of Scotland
, 12
Safety paradigm
, 178
Sarbanes-Oxley Act (SOX)
, 137, 202
SARS
, 6
Scenario analysis
, 73, 147
Sciences of danger
, 33–34
Secondary damages
, 149
Sects
, 210
Security
, 121
management
, 133–134
Semantic cyber-attacks
, 195
Semi-automated category
, 200
Sentinel networks
, 16
Severity
, 149
Silos
, 3, 20, 58
Simple state
, 108
Simplification
, 197
Small-and medium-sized enterprises (SMEs)
, 60, 67, 131–132, 141, 153, 193
Social engineering (see Semantic cyber-attacks)
Social licence to operate
, 101
Social media
, 31, 65, 91
Social security
, 81
Social unrest
, 5
Société Générale (SG)
, 57
‘Soft’ social sciences
, 179
Solvency 2
, 95
Space of exposures
, 82, 145
Specifications
, 42
Spectators
, 102
Speculative risk-taking
, 30
Speculative risks
, 77, 80
‘Stakeholders’ involvement and consent
, 64–66
Standard & Poors (S&P)
, 75
Standards
, 106
State authorities
, 102
State of chaos or rupture
, 108
Statistics
, 34
Strategic decision-making processes
, 67–68
Strategic impact risk
, 130
Strategic integration of ERM
, 82
Strategic path
, 38
Strategic planning
, 9
Strategic redeployment planning (SDP)
, 108
Strategic risk management (SRM)
, 23
Strategic risks
, 80
Strategy, Risk Management, and Change (SRC)
, 134–135
Strategy development
, 68
integrating ERM into strategy development process
, 68–70
integration in strategy development process
, 81–84
Strategy–risk–change (SRC)
, 116
Strengths and weaknesses (SW)
, 62
Subsidiarity principle
, 147
Supply chain
, 153
Suppression/avoidance
, 73
Survival
, 102
Sustainability
, 5
Sustainability Strategic Planning (SSP)
, 47
Sustainable City
, 47
Sustainable economy
, 15–16
System risk analysis
, 200
Systematic risk
, 147–148
Systemic cindynic deficits (SCD)
, 15
Talent management
, 150
Tertiary damages
, 149
Third-party risks
, 4
Threats
, 146
Three-line of defence approach
, 112–114
Tick-box exercise
, 137
Tolerance
, 17, 25
Top management
, 28
engagement
, 116–117
Top-down approach
, 50
Total predetermination fallacy
, 178–179
Traditional risk management (TRM)
, 10, 49, 77, 83–84, 140
frameworks
, 194
Training
, 84
Transfer risk financing costs
, 163
Transfer/share
, 73
Transmission rate (RT)
, 214
Transparency
, 57, 87
Travel restrictions
, 6
Trust
, 91
Uncertainty
, 9, 122–123, 145–147
decision-making in uncertain future
, 20–22
managing uncertainty through continuous strategic process
, 12–15
survey of literature on managing
, 11–12
Unenlightened catastrophism
, 108
Unnecessary complexity
, 180
Unsystematic risk
, 147–148
Upstream resources
, 153
Valley of decision avoidance
, 182
Value creation
, 133–134
Vector resource/peril
, 157
Violence
, 210
Volatility
, 53–55
Voluntary human peril
, 160
Walker report
, 111
Western philosophy
, 123n15
World Economic Forum (WEF)
, 92–93
World Health Organization (WHO)
, 1
XYZ risk manager
, 83
Zurich Financial Services Ltd.
, 99
- Prelims
- Introduction: Risk-Management in a Pandemic and Post-Pandemic World
- Chapter 1: Risk Management and Uncertainty
- Chapter 2: Managing Strategic Risk or Strategic Management of Risk
- Chapter 3: The Fundamentals in Risk Management
- Chapter 4: ERM: An Efficient Approach to the Management of Uncertainties
- Chapter 5: Improving Risk Management Processes Through ERM
- Chapter 6: Contrasting Traditional Risk Management (TRM) and Enterprise-wide Risk Management (ERM)
- Chapter 7: The Management of Risk and the Management of Change
- Chapter 8: Emerging Risk Management Issues
- Chapter 9: Risk Management Projects and Change
- Chapter 10: Conclusion and Perspectives
- Appendix 1: Exposure Identification and Risk Assessment
- Appendix 2: ERM and Complexity
- Appendix 3: Managing Cognitive Risk
- Appendix 4: Brief Overview of the Cindynics
- Glossary (Essential Concepts in Risk Management)
- Bibliography
- Further Reading
- Index