Extensive research done by the authors for UMIST has shown that there is a lack of understanding of risk management by organizations particularly how to implement it at every level of the organization. Fully updated from the first edition and based on the authors research and practical implementation, Corporate Risk Management 2nd edition deals with risk and uncertainty and their sources; the evolution of risk management and its processes, risk management tools and techniques (for identification and analyses); corporate and project finance; risks affecting corporate and project finance; risk modeling; portfolio risk management and cash flow analysis; and the application and sequencing of risk management at corporate, strategic business and project levels in an organization. The book analyses, compares and contrasts tools and techniques used in risk management at corporate, strategic business and project level and develops a risk management mechanism for the sequencing of risk assessment through corporate, strategic and project stages of an investment in order to meet the requirements of the 1999 Turnbull report. By classifying and categorizing risk within these levels it is possible to drill down and roll-up to any level of the organizational structure and to establish the risks that each project is most sensitive to, so that appropriate risk response strategies may be implemented to benefit all stakeholders. This second edition provides guidance on new regulations in corporate governance, including updates on the Turnbull and Sarbanes Oxley acts, the Higgs report and European legislation. There is also a vastly expanded section on risk and uncertainty, including an evaluation on other authors views and an updated section on the sources of risk, for example on the pension-related issues connected with equity risk. The book includes a fully updated and expanded model framework for analysing risk at corporate, strategic business and project levels, along with real-life examples and case studies on, for example, risk and mitigants in the oil and gas industry, balance sheets and profit and loss accounts, and credit processes within portfolio management. There are also fully updated and expanded sections on financial modeling – especially the use of Excel as a powerful financial tool and derivatives, including interest rate, RPI swaps and foreign exchange. New material constitutes a third of the book, with extensive updates to the remainder of the book. Each Chapter will contain updated references and examples. Combining theory with practical examples, this book offers the first integrated approach for the implementation of a risk management mechanism. Aimed at individuals and organizations involved in risk management and its financial aspects, this book provides students, postgraduates, risk practitioners, financiers and project managers with sound information on commercial aspects of risk management.
Book Details:
- Author: Tony Merna
- ISBN: 9780470518335
- Year Published: 2007
- Pages: 440
- BISAC: BUS027000, BUSINESS & ECONOMICS/Finance
About the Book and Topic:
Extensive research done by the authors for UMIST has shown that there is a lack of understanding of risk management by organizations particularly how to implement it at every level of the organization. Fully updated from the first edition and based on the authors research and practical implementation, Corporate Risk Management 2nd edition deals with risk and uncertainty and their sources; the evolution of risk management and its processes, risk management tools and techniques (for identification and analyses); corporate and project finance; risks affecting corporate and project finance; risk modeling; portfolio risk management and cash flow analysis; and the application and sequencing of risk management at corporate, strategic business and project levels in an organization. The book analyses, compares and contrasts tools and techniques used in risk management at corporate, strategic business and project level and develops a risk management mechanism for the sequencing of risk assessment through corporate, strategic and project stages of an investment in order to meet the requirements of the 1999 Turnbull report. By classifying and categorizing risk within these levels it is possible to drill down and roll-up to any level of the organizational structure and to establish the risks that each project is most sensitive to, so that appropriate risk response strategies may be implemented to benefit all stakeholders. This second edition provides guidance on new regulations in corporate governance, including updates on the Turnbull and Sarbanes Oxley acts, the Higgs report and European legislation. There is also a vastly expanded section on risk and uncertainty, including an evaluation on other authors views and an updated section on the sources of risk, for example on the pension-related issues connected with equity risk. The book includes a fully updated and expanded model framework for analysing risk at corporate, strategic business and project levels, along with real-life examples and case studies on, for example, risk and mitigants in the oil and gas industry, balance sheets and profit and loss accounts, and credit processes within portfolio management. There are also fully updated and expanded sections on financial modeling – especially the use of Excel as a powerful financial tool and derivatives, including interest rate, RPI swaps and foreign exchange. New material constitutes a third of the book, with extensive updates to the remainder of the book. Each Chapter will contain updated references and examples. Combining theory with practical examples, this book offers the first integrated approach for the implementation of a risk management mechanism. Aimed at individuals and organizations involved in risk management and its financial aspects, this book provides students, postgraduates, risk practitioners, financiers and project managers with sound information on commercial aspects of risk management.
Risk management offers a systematic approach to assessing risk exposure and limiting it to acceptable levels through management action. Over the past 20 years, risk management has become increasingly important for forward thinking organisations. As profit margins fall, efficiency gains must be made through the application of new management techniques. Changing global trends means that there is now more emphasis on understanding the process of risk management within the organisation. During the appraisal phase the key decision, including the viability decision and the sanction decision, have to be made. The mitigation of risk events with a high probability of occurrence and a high impact on the project or business unit has to be balanced with the explanation of potential opportunities.
UNIQUE CONTENT: No other text deals with risk management at every level of the organization WIDE APPEAL: Equally appealing to students and practitioners PRACTICAL: Based on the authors research and practical implementation; research includes interviews with over 90 corporate organizations in the UK and overseas. No other text deals with risk management at every level of the organization. * Appeals equally to students and practitioners. * Based on the authors’ research and practical implementation; research includes interviews with over 90 corporate organizations in the UK and overseas.
About the Author
Tony Merna has a postgrad degree in risk management from UMIST. He has taught Risk management as part of a distance learning MSc in commercial management to BT and a project finance course to a number of UK organizations. He has helped to develop a risk management module for an MBA at Singapore University and delivers seminars on risk management, risk modeling and project finance for the banking sector in South Africa. Faisal F. Al-Thani Bsc. MSc, PhD, is Deputy General manager and Assistant Operations Manager of Anadarko Petroleum Corporation, Qatar. A petroleum engineer by profession, he has over 19 years experience in the planning, design, operation, maintenance and finance strategies of oil and gas projects. Faisal is currently undertaking research as part of a Fulbright award in the USA.