Managing Business Risk
An Organization-Wide Approach
to Risk Management
There's a quiet revolution
occurring when it comes to risk management in today's leading organizations. No longer the
little understood and sporadically implemented stepchild of modem management practices,
risk management is moving with an increased sense of urgency into every department,
division, and boardroom across a wide spectrum of businesses. And with good reason!
Financial and technological risks have never been greater. There's heightened awareness of
catastrophic risk. Concerns about increased exposure to legal liability and financing
human-asset risks such as disability and retirement funding have never been higher.
The trend is clear: The need
for risk management can no longer be exclusive to the finance department or satisfied
simply with an insurance policy; it must be organization wide. It must employ the latest
techniques and risk-financing tools available. Managing Business Risk presents an
extensive explanation and thought-provoking discussion of risk management as the
integrated, core-management function that today's environment of business risk demands it
to be.
In order to fully appreciate
how risk management's present and future compare, readers must get a perspective on the
history of risk management, on the general structure of risk-management practices, and on
the controversies and issues that confront risk managers today. To accomplish this, the
authors have developed a ground-breaking model known as Organization Risk Management
(ORM), which gives a broad context for understanding risk management. The ORM model allows
readers to explore actual risk-management practices and also consider how current trends
and issues may transform risk management into a better-integrated, cost-saving, and
company-wide management function.
With ORM as a framework, both
risk specialists and nonrisk managers will leam how to:
-
Understand how the nature of an organization's particular business or industry influences
the specific functional aspects of risk management.
- Support
the corporate mission through risk-management practices.
-
Discover and analyze an organization's risks and exposures to risk, including legal
liability and physical-, financial-, and human-asset exposures.
-
Assess the impact of risk on an organization using various measurement techniques.
-
Control risk by employing measures to prevent, reduce, transfer or neutralize
uncertainties.
-
Fund the purchase of insurance and other risk-financing tools that are available.
-
Implement and administer a full risk-management program involving a range of technical and
general management activities from claims administration, to safety training, to the
development of a hedging arrangement.
Using the authors' visionary
approach to one of business's most critical issues, readers gain not only a full
complement of risk-management tools, but also a richer appreciation of all facets of risk
management that would not be possible through a traditional introduction to the subject.
Peter C. Young, Ph.D., is the
E.W. Blanch Sr. Chair in Insurance at the University of St. Thomas Graduate School of
Business. He lives in Minneapolis, MN.
Steven C. Tippins, Ph.D.,
CLU,ARM, is the Rolf A. Weil Professor of Risk Management and Insurance at Roosevelt
University. He lives in Chicago, IL.
442 pages