Risk Governance

<p>Biases, blind spots and bonuses (or incentives more broadly) have led to numerous risk management disasters. Risk governance is a potential solution to these problems yet is not always as effective as we would like it to be. One reason for that is the current dearth of risk governance expertise. </p><p>This book seeks to address this issue, providing:</p><ul> <p> </p> <li>Understanding of the fundamental forces that cause disasters: the biases, blind spots and bonuses. This understanding is drawn from the disciplines of economics/finance and psychology;</li> <p> </p> <li>Explanation of the structures of risk governance and common challenges experienced in their use e.g. board risk committee, risk/compliance function, assurance function, risk appetite statement, risk disclosures;</li> <p> </p> <li>Thorough investigation of risk culture and its importance in risk governance, including the assessment of risk culture;</li> <p> </p> <li>Understanding of the mechanisms of executive compensation and how they link to risk management – one of the most difficult challenges confronting both risk and remuneration committees;</li> <p> </p> <li>Explanation of the risk management process (based on international standards ISO31000), including practical guidance on risk communication, analysis and treatment;</li> <p> </p> <li>Guidance on the management of strategic risk, emphasising the importance of scenario analysis;</li> <p> </p> <li>Application of these principles to cyber risk, climate risk – two pervasive risks affecting almost every organisation;</li> <p> </p> <li>Numerous case studies and examples drawn from various industries around the world; and</li> <p> </p> <li>Discussion of what has been learned about risk governance from the COVID-19 experience.</li> </ul><p>The book is an essential guide for postgraduate students; participants in professional education programs in governance and risk management; directors; senior executives; risk, compliance and assurance professionals as well as conduct and prudential regulators worldwide.</p> <p><strong>Risk Governance 1. Emergence of Risk Governance</strong> 2. Structures of Risk Governance 3. Assessing and Embedding Risk Culture 4. Incentives and Accountability <strong>Part 2: The Risk Management Proce</strong>ss 5. Risk Management Process Overview 6. Communication and Influencing for Risk Governance 7. Context, Criteria and Risk Appetite 8. Risk Analysis 9. Risk Treatment 10. Report, Monitor, Review Part 3: Case Studies 11. Volkswagen/Dieselgate Case 12. Commonwealth Bank of Australia/Conduct risk Case 13. Strategic Risk Management 14. Climate Risk 15. Cyber Risk Management 16. Lessons from COVID-19 </p>