Recommended Reading
Against the gods: The remarkable story of risk
by Peter L. Bernstein
In this unique exploration of the role of risk in our society, Peter Bernstein argues that the notion of bringing risk under control is one of the central ideas that distinguishes modern times from the distant past. Against the Gods chronicles the remarkable intellectual adventure that liberated humanity from oracles and soothsayers by means of the powerful tools of risk management that are available to us today.
Human existence is based upon risk. People in all walks of life - politicians, scientists, business people, sports enthusiasts, even families - routinely face decisions which carry an element of risk. The ability to evaluate and control the level of risk entailed in these decisions is one of the fundamental tenets of modern society, yet from where did this phenomenon arise? This text charts the adventures of a group of thinkers who embarked on a voyage of intellectual discovery, transforming primeval superstition into the powerful tools of risk control employed today. Along the way, Bernstein encounters the questions which troubled some of the greatest thinkers in history, such as Pascal, Fermat, Bernoulli and von Neumann: To what degree should we rely on the past to determine the future? Which matters more when evaluating risk: the facts as we see them or the subjective belief in what lies hidden in the world of time? Have we replaced our blind faith in chance with an over-reliance on science?
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Seeing tomorrow: Rewriting the rules of risk
by Ron C. Dembo and Andrew Freeman
A dynamic new paradigm for predicting the future of risk. How can anyone make sense of all the numbers that bombard us today? Even for intelligent individual investors and successful investment firms it is increasingly difficult to filter all of the information and identify real risk. Think of someone trying to choose between two mutual funds. After that person looks at the past performance numbers, should he or she feel comfortable choosing the fund that has done well historically? If the past is not always a guide to the future, what then? For most investors, identifying risk on an investment is a challenge or an impossibility. Investors need methods to measure risk that transcend history and look into the future. While Peter Bernstein's Against the Gods focused on the history of risk, Seeing Tomorrow concerns itself with the future of risk. In this ground-breaking book, Ron Dembo and Andrew Freeman have built a framework for a new risk paradigm that peers into the risk-taking of tomorrow. The innovative method described in the book reduces the complexity of risk to its base elements, and takes into account the individual's circumstances, tolerances, and the unique reasoning behind his or her choice-making. Presents a forward-looking way of thinking about risk that is meaningful and understandable to both individuals and companies.
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M_o_R Management of Risk: Guidance for Practitioners
Published for the Office of Government Commerce under licence from the Controller of Her Majesty's Stationery Office
This guide is intended to help organisations to put in place effective frameworks for taking informed decisions about risk. The guidance provides a route map for risk management, bringing together recommended approaches, checklists and pointers to more detailed sources of advice on tools and techniques. It expands on the OGC Guidelines for Managing Risk.
The process of investment appraisal, in which assessments are made of costs, benefits and risks, is outside the scope of this guide. However, many of the principles and techniques described here can be used when developing the business case. The approach described in this guide complements OGC's guidance on programme and project management and is continually updated to reflect current thinking. This approach, branded by OGC as M-o_R (Management of Risk), is supported by training and qualifactions.
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Project Risk Management: Processes, Techniques and Insights
by Chris Chapman and Stephen Ward
The extensively revised second edition of Project Risk Management builds on the success of the original book in showing how critical an understanding of risk management is in the estimating, planning, implementation and realization of any project, large or small.
Project Risk Management sets out the key issues and concepts involved in effective risk management in a clear and accessible way, using a methodology that is applicable to all kinds and all sizes of projects, whether requiring detailed, quantitative analysis or a rougher approach using only qualitative analysis.
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GE "work-out": How to implement GE's revolutionary method for busting bureaucracy and attacking organizational problems - fast!
by Steve Kerr, Dave Ulrich, Debbie Burke and Ron Ashkenas
This book is aimed at managers and employees who want to break down bureaucracy and hierarchy. People who have followed GE’s tremendous success with it's WorkOut program, and are interested in applying GE techniques to their organizations will use this book to conduct their own Work-Out process. It will also be useful to consultants who want to introduce the Work-Out approach to their clients.
The book uses case examples from GE and other companies, including Zurich Financial Services, where Work-Out has been employed. It provides concrete and realistic guidance for conducting Work-Out activities, and emphasizes the importance of embedding Work-Out in a larger scheme of leadership development, employee empowerment and productivity improvements.
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The rise and fall of strategic planning
by Henry Mintzberg
A history of strategic planning reviews the pitfalls of planning, showing how it can destroy commitment, discourage change, and breed a political atmosphere and arguing that managers must rethink the process.
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The balanced scorecard – Translating strategy into action
by Robert S. Kaplan, Arthur Lowes and David P. Norton
The Balanced Scorecard shows managers how to mobilize their people to fulfil the company's mission. More than just a measurement system, this revolutionary tool tells readers how to channel the energies, abilities, and specific knowledge they possess into the achievement of long-term goals.
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Integrating corporate risk management
by Prakash Shimpi
Capital and risk are closely interrelated, and an efficient management of one must entail an efficient management of the other. Ultimately, companies find that to answer these questions they have to consider more fundamental structural issues. A constant and close co-operation must develop between those responsible for directing activities, those responsible for raising capital to fund those activities, and those responsible for covering the risks that the activities entail.
Control self assessment – For risk management and other practical applications
by Keith Wade and Andy Wynne
The effective management of risk and the use of well-designed control systems are essential elements in ensuring that any organisation meets its business objectives. Control self assessment (CSA) is one of the most topical and controversial of such management techniques. It requires commitment from managers and staff at all levels to the regular and open review, through a formalised documented process, of the effectiveness of the control systems designed to guard against critical risks within each individual’s sphere of influence. Control Self Assessment includes case studies from practitioners in a wide variety of organisations, both in the private and public sectors, who recount their own experiences of implementation. The book concludes with a view of the future for CSA.
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Understand financial risk in a day
By Alex Kiam
All investors, and financial institutions in particular, face an ever growing degree of risk in their financial transactions. Understand Financial Risk in a Day shows you how to evaluate and model those risks as the first step in overcoming uncertainty. With a full explanation it covers: Markowitz Diversification, The Capital Asset Pricing Model, Betas, Fundamental Factor Models, Macroeconomic Models, Statistical Risk Measures, Volatility, Value at Risk, Benchmarking and The Greeks. Light on detailed formulae and heavy on easy-to-follow examples. It leads the reader to a greater awareness of how to evaluate the risks they are facing and adapt a strategy to create the best possible outcome.
Brands: The new wealth creators
Susannah Hart and John Murphy (Editors)
Branding is currently one of the most exciting subjects around; people everywhere are waking up to the fact that brands are a huge source of value. But it is only be understanding the real value that brands bring to consumers that brand owners and manufacturers can learn to exploit that value. Brands no longer operate only in the traditional packaged goods markets; the techniques of good branding are just as vital in the business-to-business and utilities sectors, and are increasingly being applied even in non-commercial areas, from charities to football clubs. This comprehensive and authoritative book looks at branding from a wide range of perspectives: from the creation of a new brand, through the development of brand names and packaging designs, to advertising international brands. It explores the hot topics of brand valuation and brand licensing, as well as studying the increasingly important role of the corporate brand. This book is a must for anyone with an interest in brands.
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Riley on business interruption insurance
David Cloughton (Editor)
This complete reference work presents a comprehensive and practical examination of business interruption and consequential loss insurance and claims, with the emphasis on practice and procedure. The book examines several types of cover, and gives detailed guidance on over 200 charges in company accounts. It also considers more than 30 other perils and contingencies besides fire, including labour disturbances, strikes and riots. * Comparative UK-US commentary makes it invaluable to international players in the field * Can be picked up and used by lawyers worldwide where, for instance, insurance claims are processed * Focuses on the wordings of policies in the UK and US but also looks at Asia, Africa, the Americas and Australasia * Quick, accessible reference guide supplying practical answers to practical problems.
Risk analysis and management for projects (ramp)
Risk analysis and management for projects (RAMP) is a process that has been developed by a joint working party of the Institution of Civil Engineers and The Actuarial Profession for the purpose of evaluating and controlling risk in major projects. Ramp demonstrates how to identify, analyse and mitigate risks and how to place financial values on them. This practical handbook details a rigorous approach to risk management that can be applied to all types and stages of investments. It provides a method to enable a structured and consistent analysis of the financial implications of risk within ( and between) projects to be carried out effectively. It can be applied either at a strategic level or as a detailed analytical and control process. The RAMP process aims to achieve as much certainty as possible about a long-term and uncertain future. Risk analysis and management for projects will be of use to everyone who is concerned with the financial, commercial, legal or engineering aspects of major projects and ongoing activities of any kind.
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