Lewis The Fundamental Rules of Risk Management

1. Auflage 2012
ISBN: 978-1-4398-1620-2
Verlag: Taylor & Francis
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 240 Seiten

The consequences of taking on risk can be ruinous to personal finances, professional careers, corporate survivability, and even nation states. Yet many risk managers do not have a clear understanding of the basics. Requiring no statistical or mathematical background, The Fundamental Rules of Risk Management gives you the knowledge to successfully handle risk in your organization.
The book begins with a deep investigation into the behavioral roots of risk. Using both historical and contemporary contexts, author Nigel Da Costa Lewis carefully details the indisputable truths surrounding many of the behavioral biases that induce risk. He exposes the fallacy of the wisdom of experts, explains why you cannot rely on regulators, outlines the characteristics of the "glad game," and demonstrates how high intelligence or lack thereof can lead to loss of hard-earned wealth. He also discusses the weaknesses and failures of modern risk management.

Moving on to elements often overlooked by risk managers, Dr. Lewis traces the link between corporate governance and risk management. He then covers core lessons surrounding the role of risk managers as well as the difficult subject of integrated, single lens analysis of risk. The book also explores aspects of spreadsheet risk and draws on lessons learned in the information systems and software engineering communities to provide guidance on selecting the right risk management system. It concludes with a discussion on the most dominant of risk measures—value at risk.

Having a clear understanding about risk separates successful professionals, companies, and economies from history’s forgotten failures. Through examples and case studies, this thought-provoking book shows how the rules of risk can work to protect and enhance investor value.

Zielgruppe

Financial managers in risk management, risk managers, chief risk officers, and students in finance.

Autoren/Hrsg.

Lewis, Nigel Da Costa

Lewis, Nigel

Fachgebiete

• Wirtschaftswissenschaften Betriebswirtschaft Management Risikomanagement

Inhaltsverzeichnis

Section I: The Behavioral Foundations of Risk Management
Unreason Is the Even Eviler Twin Brother of Greed
A Word to the Wise—You Cannot Rely on the Flynn Effect
The Unintended Consequences of the Glad Game
But You Have to Remember Ivar Kreuger of Kalmar!

The Maleficent Hand of the Men in Gray Suits
Unreason Abounds in Places Where It Must Not
The Conspiratorial Regulator
The Apathetic Regulator

The Unpalatable Truth about Risk Management
A Rather Vulgar, But Common, Perception of Risk Management
The Emperor of Risk, His Lyre, and the Palatine
The Utter and Total Redundancy of Financial Risk Management
The Risk Manager as a "Quivering Dastard"
Perception and Reality about Risk Management
For Further Thought
Additional Resources
Appendix

Section II: What You Need to Know, but Nobody Wants to Tell You
What the Textbooks Will Not Tell You about Corporate Governance
The Essence of the Governance Issue
The Superficiality of Compliance
Why "Gentleman’s" Agreements Do Not Work
The Role of Criminal Penalty
The Benefit of Wolf Pack Capitalism
The Inherent Ethos of Risk Management
The Cost of Corporate Governance
Why Governance Failures Are Inevitable
For Further Thought
Additional Resources

The Most Important Lesson a Risk Manager Must Know
Odysseus and the Sirens’ Song
The Consequence of Ignoring the Golden Rule
An Immutable Condition for Success in Risk Management
For Further Thought
Additional Resources

A Powerful Secret from Henry Fayol
The Great Work: General and Industrial Management
The Rise of Fayol’s "Strategic Security Director"
The Warren Buffet Principle of Risk Management
Can Chief Risk Officers Add Value?
For Further Thought
Additional Resources

The Incredible Advantage of a Monocle on Risk
What Is a Monocle on Risk?
The Hidden Dangers of Risk Management Silos
The Need for Better Risk Management
The Challenge
The Three Essential Elements of Successful Risk Integration
For Further Thought
Additional Resources

Benefit from the Fable of Spreadsheet City
Don’t Be a Victim of Spreadsheet Hell
Why Spreadsheet Failure Costs Big Time!
How to Bring Spreadsheet Risk under Control
Understanding the Nature of Spreadsheet Error
The Principles of Spreadsheet Engineering
The Potential of Compilable Spreadsheets
Seven Rules for Superior Spreadsheet Design
How to Minimize Risk through Formal Testing
For Further Thought
Additional Resources

How to Guarantee Success by Understanding the Nature of Failure
The Value Added of Vendor Risk Information Systems
How to Guarantee Success by Understanding the Nature of Failure
Developing a Winning Game Plan
Creating a High Performance Team
The Important Lesson of ½ × n × (n - 1)
The Critical Role of Executive Buy-In
Clarifying Your Requirements
The Truth about Project Managers
For Further Thought
Additional Resources

Snake Oil Salesmen, Goat Gonads, and Value at Risk
VaR Explained
The Joyous Exclamation of Simons
The Tipping Point
What the Rocket Scientists May Not Tell You, But You Need to Know
For Further Thought
Additional Resources

Index

Notes appear at the end of each chapter.

Über Autor(innen)

Nigel Da Costa Lewis is a speaker, writer, and researcher on the uncertainty, risk, and irrational bias found in investing. Dr. Lewis has authored four books as well as numerous articles in international publications, such as the Journal of Investing, Journal of Wealth Management, and Pensions. He earned four master’s degrees from the University of London and a PhD from the University of Cambridge. His current research focuses on asset allocation, impact of fees on retirement savings, maximization of retirement accounts, new forms of diversification, life-cycle investing, intelligent portfolio optimization, and post-retirement optimal asset allocation. Visit www.nigeldlewis.com for more information.