Annotated Bibliography on Enterprise Risk Management and Risk Management

Annotated Bibliography on Enterprise Risk Management and Risk Management

AICPA Staff, (2018). Enterprise Risk Management: Guidance for Practical Implementation and Assessment. Hoboken: John Wiley & Sons, Incorporated.

The book outlines the ultimate purpose of every organization that exists in the sector, which is creating value for its stakeholders. Companies have to set goals and objectives, come up with strategies, and plan for achieving them and performing actions to create value for stakeholders. And in the process of executing these plans, enterprises can run into challenges and uncertainties, which requires the management to sough for methods to tackle them, and ERM provides a background where the administration is can address these challenges comprehensively. The article also highlights the importance of implementing and maintaining an effective ERM process because it aids the entire management to increase their confidence in handling the risks the entity is likely to face. The authors of the book also focused on the essence of risk management disclosures to money lending firms before making lending decisions.  The objective of the article was to leverage existing conceptual frameworks and offer sufficient guidance for designing and implementing a new ERM process along with the policies and procedures that define the whole ERM program, or for assessing and enhancing an existing plan.

Altenbach, J. (2015) A Comparison of Risk Assessment Techniques from Qualitative to Quantitative. Proceedings of the ASME Pressure and Piping Conference, July 23-27 2015. Honolulu, Hawaii.

This book acquaints the peruse with subjective and quantitative risk examination. It surveys techniques to speak to the consequence of such analysis in chance networks and how screens can be applied to sift through dangers of low centrality. Inferring that gathering of risk levels is best done after an intensive assessment of the mishap situations, rather than aimlessly applying predefined screens, the creator audits a multidimensional quantitative screening grid that presents a quantitative outcome scale. This permits relative hazard to be determined for the whole framework. The creator, at that point, notices and counters ten rational explanations behind not measuring hazard evaluations.

Apostolakis, G. E. (2017). How Useful is the Quantitative Risk Assessment? Risk Analysis, Vol. 24, No. 3, (2017). McLean, VA: Society for Risk Analysis.

The creator maps QRA’s state in a few enterprises by stages: distrust, recognition, and certainty. He contends that by first characterizing bothersome end states, next to the unsettling influences that could cause them and afterward measuring and mapping mishap situations utilizing occasion trees, QRA can primarily aid wellbeing arranging. Focusing on the utilization of a friend survey by autonomous specialists, he asserts QRA can expand fulfillment. He touches on various restrictions, remembering its constrained use for including human mistakes during mishap conditions. He reacts to one other significant concern in regards to QRA, explaining that it isn’t only worried about evaluation, yet with getting disappointment.

Association, A. H. L. (2016).AHLA Enterprise Risk Management Handbook for Healthcare Entities (AHLA Members)

The article is focused on outlining the need for having a complete risk management process and plan and the importance of implementing these strategies. An enterprise risk management handbook for healthcare entities also addresses the needs of the whole organization precisely in every barrier in each department. Some of the coverage in the book include the general overlook of ERM and its development, a discernment on risk financing tactics, comprehension on structuring an enterprise risk management system, the influence of electronic medical care systems and the initiation of e-management in different settings This third version of the Enterprise Risk Management Handbook for Health Care Entities proceeds with the investigation into Enterprise Risk Management (ERM). It addresses the requirement for and execution of a hazard the executives framework that will evaluate and incorporate the bunch zones of significance in the medicinal services setting. The advantage of having a thorough risk the executives’ plan and procedure that includes the whole endeavor turns out to be progressively significant consistently.

Baker, V. (2015) Greenpeace v. Shell: media exploitation and the Social Amplification of Risk Framework (SARF). Journal of Risk Research, Vol. 8, No.7-8, October-December 2015, pp. 679-691. Oxford: Taylor & Francis.

Pastry specialist acquaints the peruse with a portion of the analysis on the SARF, for example, its static way to deal with media. He proceeds to show that the SARF hypothesis allows for the dynamic translation of media use. He plays out a top to the bottom contextual investigation of three incredible risk signals made by Greenpeace in the dumping of the Brent Spar. He shows how Shell didn’t respond to these worries quick nor unmistakably enough to constrict the risk signal. One gradually expanding influence, the blacklist of German Shell oil stations, is appeared and how at last the enhancement of this hazard signal prompted Shell’s choice to audit its arrangements

Chapman, R. J. (2013). Simple tools and techniques for enterprise risk management. Hoboken, N.J: Wiley.

The article ‘Financial ERM’ offers all the necessary tools to construct and manage a broad enterprise risk management. Not only does the book outline the construction of particular frameworks, but it also explains both the internal and external settings in which the risk management must be conduct. Besides, it provides comprehensive coverage on qualitative and quantitative approaches that can be employed in identifying, modeling, and measuring risks as well as elaborating on several risk mitigation strategies that are effective for organizations. The paper also applies the use of visual aid to assist in describing numerous plans available and other risk management issues. Several proprietary, mandatory and advisory risk management frameworks have also be outlined in the book, which makes its an outstanding source

Chuang, Y. W., Lin, C. Y., Shih, J. Y., & Tsai, W. C. (2017). The Value of Implementing Enterprise Risk Management: Evidence from Taiwan’s Financial Industry

This bit of work looks at how the connection between ERM execution with the firm an incentive among financial firms in an Asia creating market from 2001 to 2016. It additionally inspects whether adjustments in cost income adequacy across organizations can be elucidated by ERM selection. The principal contention of this article was to decide if firms in Taiwan’s commercial industry get any help from significant business hazard the board (ERM) usage. Another purpose of worry of this article is to decide how a lot of substantial worth endeavor hazards the board movement makes. This source is helpful because it shows that budgetary organization actualizing ERM is advantageous to the clients. Out of the consequences of the investigation completed shows that one advantage by adding esteem contrasted with non-clients. The article is objective since it explains how the selection of significant business hazards the board helps firms to improve their income and cost efficiencies. In my bit of work, I will utilize this article to show that on the money related industry, the banks and property/risk (P/L) agents grasping ERM produce more welfares in cost reserve funds and income viability.

Fraser, J. R. S., Narvaez, K., & Simkins, B. J. (2015). Implementing enterprise risk management: Case studies and best practices. Hoboken, N.J: Wiley.

Enterprise risk management is a developing discipline aimed at a sophisticated and improperly-understood subject, and therefore, science is advanced best by collecting information from numerous and independent sites. A set of rich observations teaches the field practitioners and scholars as well as offering the background for them to come up with descriptive and normative theories and codified best practices. Fraser, Simkins have done invaluable research and services, and Narvaez to develop the science of enterprise risk management by gathering several case studies that elaborate on innovative risk management practices in extensive sets of companies around the globe. The book acts as an essential source of data for individuals and organizations interested in the evolving and advancing sector of risk management. Moreover, the article’s case studies on different organizations across the world and topics provide extensive coverage of new data on enterprise risk management. The case studies used in the report are some of the leading academics and practitioners of enterprise risk management.

Fraser, J. R., & Simkins, B. J. (2016). The challenges of and solutions for implementing enterprise risk management.Business Horizons,59(6), 689-698

Fraser and Simkins give the difficulties and arrangements that are looked at during the usage of ERM. Endeavor Risk Management (ERM) started in the late 1990s and has since been generally perceived as a desire for the proper administration and corporate administration. In any case, as reviews appear, numerous organizations are as yet battling to execute ERM. This article talks about the difficulties that organizations face while implementing ERM and offers answers to organizations in trouble of ideas and usage. They influence Hydro One’s aptitude to accomplish ERM development as a best practice contextual analysis. The organization’s hazard the executives’ strategies have been altogether investigated and archived. Hydro One has been a triumph at ERM for over 15 years and is a brilliant association to assess BRM’s prescribed procedures. This article examines the difficulties organizations face while actualizing ERM and offers answers for firms battling with the ideas and execution. It draws its conclusion upon Hydro One’s involvement with accomplishing ERM development as a best practice contextual analysis.

Green, P. E. J. (2016). Enterprise risk management: A common framework for the entire organization

The paper discusses the various types of risks that businesses are associated with daily such as financial, cyber, health, supply chain, safety and environmental, strategic as well as political risks. It also provides corporate terminologies and framework that assists firms in managing these risks in order to have an operational ERM system. The structure acts as a background to an organization intending to prevent significant risk events, detect threats when occur, and be able to respond effectively, quickly, resiliently, and appropriately. The article also resolves the challenge of differing terminology, strategies, and techniques within the company and between various risks specialties by exhibiting the major principles corporate to managing all kinds of threats. ERM is perfect for managers and executives across the whole organization by providing a general comprehension they need in daily language, to successfully navigate, navigate and mitigate the complicated risks they encounter in their everyday operations in today’s worldwide market.

Hansson, S.O. (2014) Fallacies of Risk. Journal of Risk Research, Vol. 7, No. 3, April 2014, pp. 353-360. Oxford: Taylor & Francis.

Hanson investigates contemporary talk of hazard and recognizes ten paradoxes explicit to such correspondence: the sheer size false notion (chance littler than another acknowledged risk ought to be accepted), speak absolute size error, misrepresentation of expectation (common dangers ought to be recognized), ostrich’s deception (imperceptible dangers are satisfactory), evidence looking for fraud (if no logical confirmation, no move ought to be made), defer paradox (progressively exact data will get accessible, essential leadership ought to be delayed), technocratic misrepresentation (researchers choose agreeableness of hazard), accord fallacy(experts ought to be requested agreement), deception of valuing (dangers must be estimated) and dependability false notion (specialists and open dissent, the general population isn’t right).

Lam, J. (2017). Implementing enterprise risk management: From methods to applications.

This article elaborates on the motives that make one undertake certain risks in business, and it uses an example of Ferdinand Magellan in October 1517, where he asked for an investment from the king of Spain, Charles I, worth 8,751,125 silver maravedis. Magellan’s main objective was to find a westerly itinerary to Asia in order to allow circumnavigation of the globe, which was an extremely risky undertaking. And as the results were expected, only like eight percent of the entire crew and one ship out of the four that left were able to complete the voyage around the world. Even Magellan himself was not able to complete the circumnavigation as he died in the Philippines. Therefore, the main question resulting from this incident, is why would one undertake such a massive risk because Megallan stood to gain only if he succeeded. Whether one is taking a loan or driving a vehicle, individuals must evaluate the risk in the same manner, that is by weighing upsides and limiting the downsides. The objective of the book is to offer the methods and tools to assist firms in elevating their risk reports

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Liem, C. (2018). Enterprise Risk Management In Banking Industry. Firm Journal of Management Studies, 3(1), 1-15.

The fundamental point of this article was to assess ERM usage during the early period of the ERM execution rule in Indonesian, explicitly its impact on bank execution and the other way around. This article is essential to use in my examination for it includes the convergence of the four state-possessed business banks in Indonesia is included which incorporate; Bank Mandiri (BM), Bank Negara Indonesia, Bank Rakyat Indonesia. The utilization of these four kinds of banks will assist with indicating how Enterprise Risk Management in banking. The examination in this article has utilized the usage of the ERM Index, which is being used as an intermediary of ERM execution simultaneously, making an introduction of the bank execution is exhibited by three intermediaries, which are NIM, ROAA, and EM. The article is objective for it recommends to all profitmaking banks in Indonesia to actualize ERM amazingly, for it has been affirmed that ERM execution passes on positive effect towards bank profitability, and it passes on a positive sign to investors.

Lundqvist, S. A., & Vilhelmsson, A. (2018). Enterprise Risk Management and Default Risk: Evidence from the Banking Industry. Journal of Risk and Insurance, 85(1), 127-157.

The primary concern of contention of this article is that Enterprise hazard the board (ERM) has created as a plan for progressively all-inclusive and joined hazard organization with a significance on the upgraded intensity of the hazard organization framework. The point of composing this bit of work is to show how ERM ought to theoretically diminish the capriciousness of incomes, intercession hazard, and data chance, in the long run, decreasing a company’s default chance. The article synopses manners by which a vibrant arrangement of control factors and fixed properties are included, a one-standard-deviation upsurge in the degree of ERM execution decays CDS spreads by some fundamental certainties. The handiness of this article is seen when the report examines the relationship among the level of ERM execution and shirking hazard in a board dataset wrapping the world’s most significant sets. The utilization of this bit of work will be of extraordinary assistance to my exploration paper, for it shows how there is a higher sign of ERM execution is adversely related to the credit evasion swap (CDS) degree of a bank.

Meinert, M. C. (2018). Embracing ERM at Community Banks. American Bankers Association. ABA Banking Journal, 110(1), 28-29.

Grasping ERM at Community Banks is a diary composed by Meinert in the year 2018. The creator Meinert contends that the administrative center is upsurging around big business chance administration, and the controllers are anticipating that banks of all sizes should have a structure in territories of surveying and assessing hazards over the whole firm. Another purpose of contention is through the different ways which have been used by the creator to show how the entire thought of big business chance administration keeps going to be pushed down to littler and littler organizations. This source is of extraordinary assistance in my examination work, for it shows how brokers can choose is that controlling the center is gathering around significant business chance administration.

Segal, S. (2011). The corporate value of enterprise risk management: The next step in business management. Hoboken, N.J: Wiley.

The book contented is subdivided into three essential parts, necessary enterprise risk management infrastructure, enterprise process cycle, and risk governance. The chapter of the first part of the book focuses on the core events that have contributed to the rising popularity of enterprise risk management. And by so doing, it provides a stable background for a clear understanding of traditional enterprise risk management methods as well as the disadvantages. While the second chapter starts by defining risk and EMR in four ways and in terms of the ten critical ERM criteria, which are fundamental for any ERM programs to determine its level of robustness.  The third chapter discusses the downsides of traditional ERM methods to satisfy the ten principle ERM criteria and the three key challenges to these programs. The book also highlights the steps to risk identification through risk categorization and definition, qualitative risk assessment, and emerging risk identification. Other parts of the articles explain risk messaging, risk quantification, and also risk decision making

Soliman, A., & Mukhtar, A. (2017). Enterprise Risk Management and firm performance: an integrated model for the banking sector. Banks and Bank Systems.

The fundamental point of this article is to show how the establishment of Enterprise Risk Management database impacts the presentation of firms utilizing an Enterprise Risk Management run of the mill for the financial area and a joined model for estimating Enterprise Risk Management inventory. The article comprises ten recorded business banks that were assigned with the Enterprise Risk Management list as the central free factor, with Return on Average Equity (ROAE), Share Price Return (SPR), and Firm Value (FV) which were utilized as three unmistakable ward factors. This examination is indispensable and essential for my paper for it offers reliable verification of a positive relationship between Enterprise Risk Management execution and execution in the Nigerian financial fragment. The article shows how there is communication between the commercial business and Enterprise Risk Management. The ends and reasonings of this investigation are solid with those of different readings in that they utilized information from assorted enterprises, offering an establishment from which to rearrange the disclosures from this perusing to firms in various organizations.

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Taylor, L., & Kogan Page. (2014). Practical enterprise risk management: How to optimize business strategies through managed risk-taking. London: Kogan Page.

Handy Enterprise Risk Management tends to the genuine requirement for associations to face more oversaw challenges so as to augment business procedures and accomplish long haul objectives. Because of ISO 31000 and applying current best practices, it gives formats and models that can be adjusted for any industry. Separating the hypothesis on big business chance administration causes you to consider hazard to be both a chance and a danger while giving you direction on the best way to actualize it. It offers models to Risk-Adjusted Return on Capital to assess R.O.I and measure execution, counsel on developing dangers, just as best practice and exhortation on chance correspondence, straightforwardness, and securing the brand.

Counting a far-reaching diagram of hazard the executives’ obligations regarding sheets, Practical Enterprise Risk Management lifts the coverall in all procedures, helping you to install ERM into your association, arrive at your objectives, and take more, and progressively successful oversaw dangers.

Zeghal, D., & El Aoun, M. (2016). The effect of the 2007/2008 financial crisis on enterprise risk management disclosure of top US banks. Journal of Modern Accounting and Auditing, 12(1), 28-51.

Zeghal and Aoun’s purposes of contentions are that documentation of outcomes of the 2007/2008 budgetary fiasco on the limit and the prevalence of big business chance administration (ERM) disclosure in the yearly reports of the key US banks and analyze its causes. The fundamental discoveries which are essential for my paper are that through the use of a substance investigation strategy for the yearly knowledge structure 10-K for the years 2006, 2007, 2008, and 2009 shows that the ERM uncover impressively and unquestionably connected with the debacle, bank size, board singularity, dualism and seriously and adversely connected with benefit, force, and board size. Another explanation behind completing this investigation was to demonstrate that the acknowledgment of ERM, truly, offers a few benefits to firms involving improvement in introduction measures. This article is significant for it seeks after to fill a hole in progress by investigating the outcome of the emergency on ERM disclosure in the US banking segment foundation, and adds to a comprehension into the highlights influencing hazard revelation performs during the financial crisis.

Zéghal, D., & El Aoun, M. (2016). Enterprise Risk Management in the US Banking Sector Following the Financial Crisis. Modern Economy, 7(04), 494.

The point of this paper was to look at the impact of the money related emergency on the organization of hazard in the conventional US banks. This paper is significant for it shows how the subprime fiscal emergency had definitively influenced the degrees of hazard contact and its significances after the crisis. The advantage of this paper is there are slight, yet significant variances in the ERM approaches after the emergency for the three significant gatherings of hazard inspected in this examination. The three significant collections of dangers talked about here are money related, business, and vital. This wellspring of work is remarkable from different hotspots, for it gives the various modifications in ERM methodologies, which are not significant for dangers reviewed independently with the prohibition of credit hazard. This examination is primarily suitable for model setters, and administrative associations, for it shields light on the helplessness of banks to particular sorts of dangers like primary hazard and helps them to situate their investigation and find comprehensive and creative keys for future change.