| |
| |
Preface | |
| |
| |
Acknowledgments | |
| |
| |
Introduction | |
| |
| |
| |
Defining Enterprise Risk Management | |
| |
| |
Risks | |
| |
| |
Risk Drivers | |
| |
| |
Controls | |
| |
| |
Inherent and Residual Risk | |
| |
| |
Events | |
| |
| |
Outcomes | |
| |
| |
Management | |
| |
| |
Enterprise Risk Management | |
| |
| |
| |
Strategic Objectives | |
| |
| |
Financial Objectives | |
| |
| |
Statement of Financial Position | |
| |
| |
Statement of Financial Performance | |
| |
| |
Market Objectives | |
| |
| |
Customers | |
| |
| |
Suppliers | |
| |
| |
Competitors | |
| |
| |
Partners | |
| |
| |
Regulators | |
| |
| |
Operational Objectives | |
| |
| |
Corporate Governance | |
| |
| |
Human Resources | |
| |
| |
Management Team | |
| |
| |
Processes | |
| |
| |
Systems | |
| |
| |
Note on the Interdependence of Objectives | |
| |
| |
| |
At-Risk Concept | |
| |
| |
A Very Simple Distribution | |
| |
| |
A Slightly More Interesting Distribution | |
| |
| |
Location of the Distribution | |
| |
| |
Basic Statistical Measures | |
| |
| |
At-Risk Measure | |
| |
| |
| |
SOAR (the Methodology): Strategic Objectives at Risk | |
| |
| |
SOAR Methodology Components | |
| |
| |
Strategic Objectives | |
| |
| |
Execution Resources (The Enterprise Risk Management Office) | |
| |
| |
SOAR Process | |
| |
| |
| |
SOAR (the Process) | |
| |
| |
| |
Set Metrics for Defined Strategic Objectives | |
| |
| |
Why Measure? | |
| |
| |
Classes of Metrics | |
| |
| |
Metrics for Strategic Objectives | |
| |
| |
Metrics for Risk Drivers | |
| |
| |
Metrics for Controls | |
| |
| |
Setting Metrics | |
| |
| |
Cause and Effect | |
| |
| |
Cause-and-Effect Diagrams | |
| |
| |
Causal Loop Diagrams | |
| |
| |
Process Flow Charts | |
| |
| |
Regression Analysis | |
| |
| |
Sensitivity Analysis | |
| |
| |
Scenario Analysis | |
| |
| |
Examples of Metrics | |
| |
| |
Setting Target Values for Metrics | |
| |
| |
| |
Observe Metric Values | |
| |
| |
Observation Methods | |
| |
| |
Gathering Available Data | |
| |
| |
Calculating Data | |
| |
| |
Self-Assessment | |
| |
| |
Recording Observations of Metrics | |
| |
| |
Frequency of Observation | |
| |
| |
Triggers | |
| |
| |
| |
Analyze Movements in Metrics | |
| |
| |
Conducting the Analysis | |
| |
| |
Validating the Data | |
| |
| |
Validating Metric Choice | |
| |
| |
Reporting Findings | |
| |
| |
| |
React to the Metric Analysis | |
| |
| |
Record the Rationale for Your Reaction | |
| |
| |
Simple Task of Reacting According to the Measures | |
| |
| |
Confidence | |
| |
| |
Difficult Task of Managing Human Behaviors | |
| |
| |
| |
SOAR Dashboard | |
| |
| |
Today's Dashboard | |
| |
| |
SOAR Black Box Recorder | |
| |
| |
| |
Existing Enterprise Risk Management Approaches | |
| |
| |
Six Sigma | |
| |
| |
Balanced Scorecard | |
| |
| |
COSO | |
| |
| |
| |
Regulation and Compliance | |
| |
| |
Sarbanes-Oxley Act | |
| |
| |
Basel II | |
| |
| |
AS/NZS 4360:2004:Risk Management | |
| |
| |
Organizational Risk Management Policy | |
| |
| |
| |
Application of the Concept of "Shifting the Distribution" | |
| |
| |
GE | |
| |
| |
Bank Treasury Operations | |
| |
| |
Humans in Daily Life | |
| |
| |
Airlines | |
| |
| |
One Other Example | |
| |
| |
| |
Implementing the SOAR Methodology | |
| |
| |
Resourcing the Enterprise Risk Management Office | |
| |
| |
Enterprise Risk Management Officers | |
| |
| |
Enabling Technology | |
| |
| |
Applying the SOAR Process | |
| |
| |
| |
SOAR in Action Example | |
| |
| |
| |
Set (Metrics) | |
| |
| |
Cause and Effect (and Why, Why, Why?) | |
| |
| |
Cause-and-Effect Diagrams | |
| |
| |
Causal Loop Diagrams | |
| |
| |
Process Flowcharts | |
| |
| |
Regression Analysis | |
| |
| |
Sensitivity Analysis | |
| |
| |
Scenario Analysis | |
| |
| |
| |
Observe (End-of-Year Metric Values) | |
| |
| |
| |
Analyze (Movements in Metric Values) | |
| |
| |
| |
React (to the End-of-Year Analysis) | |
| |
| |
| |
Set | |
| |
| |
| |
Observe | |
| |
| |
| |
Analyze | |
| |
| |
| |
React | |
| |
| |
Conclusion | |
| |
| |
| |
SOAR Methodology FAQ | |
| |
| |
Resources | |
| |
| |
Index | |