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Overcome ERM implementation challenges by taking cues from leading global organizationsImplementing Enterprise Risk Management is a practical guide to establishing an effective ERM system by applying best practices at a granular level. Case studies of leading organizations including Mars, Statoil, LEGO, British Columbia Lottery Corporation, and Astro illustrate the real-world implementation of ERM on a macro level, while also addressing how ERM informs the response to specific incidents. Readers will learn how top companies are effectively constructing ERM systems to positively drive financial growth and manage operational and outside risk factors. By addressing the challenges of adopting ERM in large organizations with different functioning silos and well-established processes, this guide provides expert insight into fitting the new framework into cultures resistant to change.Enterprise risk management covers accidental losses as well as financial, strategic, operational, and other risks. Recent economic and financial market volatility has fueled a heightened interest in ERM, and regulators and investors have begun to scrutinize companies' risk-management policies and procedures. Implementing Enterprise Risk Management provides clear, demonstrative instruction on establishing a strong, effective system. Readers will learn to:* Put the right people in the right places to build a strong ERM framework* Establish an ERM system in the face of cultural, logistical, and historical challenges* Create a common language and reporting system for communicating key risk indicators* Create a risk-aware culture without discouraging beneficial risk-taking behaviorsERM is a complex endeavor, requiring expert planning, organization, and leadership, with the goal of steering a company's activities in a direction that minimizes the effects of risk on financial value and performance. Corporate boards are increasingly required to review and report on the adequacy of ERM in the organizations they administer, and Implementing Enterprise Risk Management offers operative guidance for creating a program that will pass muster.

Implementing Enterprise Risk Management: Case Studies and Best Practices

Foreword xiii1 Enterprise Risk Management Case Studies: An Introduction and Overview 1John R.S. Fraser, Betty J. Simkins, and Kristina NarvaezPART I Overview and Insights for Teaching ERM 172 An Innovative Method to Teaching Enterprise Risk Management: A Learner-Centered Teaching Approach 19David R. Lange and Betty J. SimkinsPART II ERM Implementation at Leading Organizations 373 ERM at Mars, Incorporated: ERM for Strategy and Operations 39Larry Warner4 Value and Risk: Enterprise Risk Management at Statoil 59Alf Alviniussen and Hcaakan Jankensgard5 ERM in Practice at the University of California Health System 75Grace Crickette6 Strategic Risk Management at the LEGO Group: Integrating Strategy and Risk Management 93Mark L. Frigo and Hans Lassoe7 Turning the Organizational Pyramid Upside Down: Ten Years of Evolution in Enterprise Risk Management at United Grain Growers 107John Bugalla8 Housing Association Case Study of ERM in a Changing Marketplace 119John Hargreaves9 Lessons from the Academy: ERM Implementation in the University Setting 143Anne E. Lundquist10 Developing Accountability in Risk Management: The British Columbia Lottery Corporation Case Study 179Jacquetta C. M. Goy11 Starting from Scratch: The Evolution of ERM at the Workers' Compensation Fund 207Dan M. Hair12 Measuring Performance at Intuit: A Value-Added Component in ERM Programs 227Janet Nasburg13 TD Bank's Approach to an Enterprise Risk Management Program 241Paul Cunha and Kristina NarvaezPART III Linking ERM to Strategy and Strategic Risk Management 25114 A Strategic Approach to Enterprise Risk Management at Zurich Insurance Group 253Linda Conrad and Kristina Narvaez15 Embedding ERM into Strategic Planning at the City of Edmonton 281Ken Baker16 Leveraging ERM to Practice Strategic Risk Management 305John Bugalla and James KallmanPART IV Specialized Aspects of Risk Management 31917 Developing a Strategic Risk Plan for the Hope City Police Service 321Andrew Graham18 BlueWood Chocolates 335Stephen McPhie and Rick Nason19 Kilgore Custom Milling 363Rick Nason and Stephen McPhie20 Implementing Risk Management within Middle Eastern Oil and Gas Companies 377Alexander Larsen21 The Role of Root Cause Analysis in Public Safety ERM Programs 397Andrew Bent22 JAA Inc.--A Case Study in Creating Value from Uncertainty: Best Practices in Managing Risk 427Julian du Plessis, Arnold Schanfield, and Alpaslan Menevse23 Control Complacency: Rogue Trading at Société Générale 461Steve Lindo24 The Role of VaR in Enterprise Risk Management: Calculating Value at Risk for Portfolios Held by the Vane Mallory Investment Bank 489Allissa A. Lee and Betty J. Simkins25 Uses of Efficient Frontier Analysis in Strategic Risk Management: A Technical Examination 501Ward Ching and Loren NickelPART V Mini-Cases on ERM and Risk 52326 Bim Consultants Inc. 525John R.S. Fraser27 Nerds Galore 529Rob Quail28 The Reluctant General Counsel 535Norman D. Marks29 Transforming Risk Management at Akawini Copper 539Grant Purdy30 Alleged Corruption at Chessfield: Corporate Governance and the Risk Oversight Role of the Board of Directors 547Richard Leblanc31 Operational Risk Management Case Study: Bon Boulangerie 555Diana Del Bel BelluzPART VI Other Case Studies 55932 Constructive Dialogue and ERM: Lessons from the Financial Crisis 561Thomas H. Stanton33 Challenges and Obstacles of ERM Implementation in Poland 577Zbigniew Krysiak and S .lawomir Pijanowski34 Turning Crisis into Opportunity: Building an ERM Program at General Motors 607Marc S. Robinson, Lisa M. Smith, and Brian D. Thelen35 ERM at Malaysia's Media Company Astro: Quickly Implementing ERM and Using It to Assess the Risk-Adjusted Performance of a Portfolio of Acquired Foreign Companies 623Patrick Adam K. Abdullah and Ghislain Giroux DufortAbout the Editors 649Index 651