Based on technical scientific research, this book presents a new perspective to help you understand how to assess and manage surprising, extreme events, known as ‘Black Swans’. This approach looks beyond the traditional probability-based principles to offer a broader insight into the important aspects of uncertain events and in doing so explores the ways to manage them.
This book recognises the fundamental issues surrounding risk assessment and risk management to help you to understand and prepare for black swan events.
Complete with international examples to illustrate ideas and concepts
Integrates risk management and resilience based thinking
Suitable for a variety of applications including engineering, finance and security.
With tips, examples and solutions throughout, this multi-disciplinary text delivers an effective and comprehensive approach to help you to understand how dynamic risk assessment (DRA) can be integrated into predictive (PRA) and strategic risk assessments (SRA) to enhance your organization’s effectiveness.
The 3-Level Risk Management Model fully supports and complements the systematic ‘five steps to risk assessment’ process
A multi-disciplinary approach to dynamic risk assessment that covers workers operating in teams and those working alone within the public, private and third sectors
Contains practical examples, tips and case studies drawn from a wide range of organizations
The book comes with access to downloadable materials from an accompanying website at: www.routledge.com/cw/dynamic-risk-assessment
A good security assessment is a fact-finding process that determines an organization’s state of security protection. It exposes vulnerabilities, determines the potential for losses, and devises a plan to address these security concerns. While most security professionals have heard of a security assessment, many do not know how to conduct one, how it’s used, or how to evaluate what they have found.
Security Risk Assessment offers security professionals step-by-step guidance for conducting a complete risk assessment. It provides a template draw from, giving security professionals the tools needed to conduct an assessment using the most current approaches, theories, and best practices.Discusses practical and proven techniques for effectively conducting security assessmentsIncludes interview guides, checklists, and sample reportsAccessibly written for security professionals with different levels of experience conducting security assessments
In addition to the editors, the contributors are Ashok Bardhan, Dan Borge, Charles N. Bralver, Riccardo Colacito, Robert H. Edelstein, Robert F. Engle, Charles A. E. Goodhart, Clive W. J. Granger, Paul R. Kleindorfer, Donald L. Kohn, Howard Kunreuther, Andrew Kuritzkes, Robert H. Litzenberger, Benoit B. Mandelbrot, David M. Modest, Alex Muermann, Mark V. Pauly, Til Schuermann, Kenneth E. Scott, Nassim Nicholas Taleb, and Richard J. Zeckhauser.
Enterprise risk management (ERM) is a complex yet critical issue that all companies must deal with in the twenty-first century. Failure to properly manage risk continues to plague corporations around the world. ERM empowers risk professionals to balance risks with rewards and balance people with processes.
But to master the numerous aspects of enterprise risk management, you must integrate it into the culture and operations of the business. No one knows this better than risk management expert James Lam, and now, with Implementing Enterprise Risk Management: From Methods to Applications, he distills more than thirty years' worth of experience in the field to give risk professionals a clear understanding of how to implement an enterprise risk management program for every business.Offers valuable insights on solving real-world business problems using ERM Effectively addresses how to develop specific ERM tools Contains a significant number of case studies to help with practical implementation of an ERM program
While Enterprise Risk Management: From Incentives to Controls, Second Edition focuses on the "what" of ERM, Implementing Enterprise Risk Management: From Methods to Applications will help you focus on the "how." Together, these two resources can help you meet the enterprise-wide risk management challenge head on—and succeed.
A distinctive characteristic of earthquakes, hurricanes, bombings, and other insurance risks is that they impact the values of stocks, bonds, commodities, and other market-based financial products, while remaining largely unaffected by or "aloof" from the behavior of markets. Quantifying such risks given limited data is difficult yet crucial for achieving the financing objectives of insurance. Powers begins with a discussion of how risk impacts our lives, health, and possessions and proceeds to introduce the statistical techniques necessary for analyzing these uncertainties. He then considers the experience of risk from the perspectives of both policyholders and insurance companies, and compares their respective responses.
The risks inherent in the private insurance industry lead naturally to a discussion of the government's role as both market regulator and potential "insurer of last resort." Following a thoughtful and balanced analysis of these issues, Powers concludes with an interdisciplinary investigation into the nature of uncertainty, incorporating ideas from physics, philosophy, and game theory to assess science's limitations in predicting the ramifications of risk.
Risk assessment and management is fundamentally founded on the knowledge available on the system or process under consideration. While this may be self-evident to the laymen, thought leaders within the risk community have come to recognize and emphasize the need to explicitly incorporate knowledge (K) in a systematic, rigorous, and transparent framework for describing and modeling risk.
Featuring contributions by an international team of researchers and respected practitioners in the field, this book explores the latest developments in the ongoing effort to use risk assessment as a means for characterizing knowledge and/or lack of knowledge about a system or process of interest. By offering a fresh perspective on risk assessment and management, the book represents a significant contribution to the development of a sturdier foundation for the practice of risk assessment and for risk-informed decision making.
How should K be described and evaluated in risk assessment? How can it be reflected and taken into account in formulating risk management strategies? With the help of numerous case studies and real-world examples, this book answers these and other critical questions at the heart of modern risk assessment, while identifying many practical challenges associated with this explicit framework.
This book, written by international scholars and leaders in the field, and edited to make coverage both conceptually advanced and highly accessible:Offers a systematic, rigorous and transparent perspective and framework on risk assessment and management, explicitly strengthening the links between knowledge and risk Clearly and concisely introduces the key risk concepts at the foundation of risk assessment and management Features numerous cases and real-world examples, many of which focused on various engineering applications across an array of industries
Knowledge of Risk Assessment and Management is a must-read for risk assessment and management professionals, as well as graduate students, researchers and educators in the field. It is also of interest to policy makers and business people who are eager to gain a better understanding of the foundations and boundaries of risk assessment, and how its outcomes should be used for decision-making.
In their careers, the authors, Brian Allen and Rachelle Loyear, have been instrumental in successfully reorganizing the way security is handled in major corporations. In this ground-breaking book, the authors begin by defining Enterprise Security Risk Management (ESRM):
“Enterprise security risk management is the application of fundamental risk principles to manage all security risks − whether information, cyber, physical security, asset management, or business continuity − in a comprehensive, holistic, all-encompassing approach.”
In the face of a continually evolving and increasingly risky global security landscape, this book takes you through the steps of putting ESRM into practice enterprise-wide, and helps you to:Differentiate between traditional, task-based management and strategic, risk-based management. See how adopting ESRM can lead to a more successful security program overall and enhance your own career. . Prepare your security organization to adopt an ESRM methodology. . Analyze and communicate risks and their root causes to all appropriate parties. . Identify what elements are necessary for long-term success of your ESRM program. . Ensure the proper governance of the security function in your enterprise. . Explain the value of security and ESRM to executives using useful metrics and reports. .
Throughout the book, the authors provide a wealth of real-world case studies from a wide range of businesses and industries to help you overcome any blocks to acceptance as you design and roll out a new ESRM-based security program for your own workplace.
In #RISK MANAGEMENT tweet, veteran corporate professionals Cinda Voegtli and Laura Erkeneff begin by citing the old maxim: What you don't know can't hurt you. Then they immediately proceed to debunk it, showing how it is singularly inapplicable to business, just as it is probably not applicable to life. What you don't know or choose to ignore can gnaw away at efficiency, quickly bloat project scopes and budgets, and ruin any chance of profit. Pressures mount as the risks grow in a project. Relationships become strained. The work environment deteriorates and all stakeholders, including you personally, stand to lose. When a project goes astray, it is no longer fun to work on.
#RISK MANAGEMENT tweet was written for today's time-crunched managers. The authors' goal was to give managers an easy guide to handling risk, thereby enhancing their performance at work. This quick and handy title is not meant to be treated as the holy grail or the final word on risk management, but rather as an introduction or refresher on how to determine risk and practice risk management in your everyday work habits. For example, using the light-hearted analogy of gators in a swamp, the authors caution you: Knowing how big the gator in the water is will allow you to buy a strong enough rope to secure him once he is out of the water.
The authors' commonsense wisdom and their deep corporate experience come together to bring you this slim little volume written in the actionable tweet format, so that you learn to quickly assess and quantify risk, improving the quality of your work environment and diminishing stress in your daily life.
#RISK MANAGEMENT tweet is part of the THiNKaha series whose 112-page books contain 140 well-thought-out quotes (tweets/ahas).
In their long-awaited book, based on years of practical experience and research, Brian Allen and Rachelle Loyear show you step-by-step how Enterprise Security Risk Management (ESRM) applies fundamental risk principles to manage all security risks. Whether the risks are informational, cyber, physical security, asset management, or business continuity, all are included in the holistic, all-encompassing ESRM approach which will move you from task-based to risk-based security.How is ESRM familiar? As a security professional, you may already practice some of the components of ESRM. Many of the concepts – such as risk identification, risk transfer and acceptance, crisis management, and incident response – will be well known to you. How is ESRM new? While many of the principles are familiar, the authors have identified few organizations that apply them in the comprehensive, holistic way that ESRM represents – and even fewer that communicate these principles effectively to key decision-makers. How is ESRM practical? ESRM offers you a straightforward, realistic, actionable approach to deal effectively with all the distinct types of security risks facing you as a security practitioner. ESRM is performed in a life cycle of risk management including: Asset assessment and prioritization. Risk assessment and prioritization. Risk treatment (mitigation). Continuous improvement.
Throughout Enterprise Security Risk Management: Concepts and Applications, the authors give you the tools and materials that will help you advance you in the security field, no matter if you are a student, a newcomer, or a seasoned professional. Included are realistic case studies, questions to help you assess your own security program, thought-provoking discussion questions, useful figures and tables, and references for your further reading.
By redefining how everyone thinks about the role of security in the enterprise, your security organization can focus on working in partnership with business leaders and other key stakeholders to identify and mitigate security risks. As you begin to use ESRM, following the instructions in this book, you will experience greater personal and professional satisfaction as a security professional – and you’ll become a recognized and trusted partner in the business-critical effort of protecting your enterprise and all its assets.
Providing a guide to the evolution, practice, benefits, and implementation of Solvency II, Executive′s Guide to Solvency II deftly covers this major European regulation which ensures that insurers can meet their risk–based liabilities over a one–year period to a 99.5% certainty. Part of the Wiley and SAS Business series, this book will guide you through Solvency II, especially if you need to understand the subtleties of Solvency II and risk–based capital in basic business language. Among the topics covered in this essential book are:Background to Solvency II Learning from the Basel Approach The Economic Balance Sheet Internal Models People, Process, and Technology Business Benefits of Solvency II
Executive′s Guide to Solvency II has as its aim an explanation for executives, practitioners, consultants, and others interested in the Solvency II process and the implications thereof, to understand how and why the directive originated, what its goals are, and what some of the complexities are. There is an emphasis on what in practice should be leveraged upon to achieve implementation, specifically data, processes, and systems, as well as recognition of the close alignment demanded between actuaries, the risk department, IT, and the business itself.
Like it or not, sometimes we need to put a monetary value on people's lives. In the past, government agencies used the financial "cost of death" to monetize the mortality risks of regulatory policies, but this method vastly undervalued life. Pricing Lives tells the story of how the government came to adopt an altogether different approach--the value of a statistical life, or VSL—and persuasively shows how its more widespread use could create a safer and more equitable society for everyone.
In the 1980s, W. Kip Viscusi used the method to demonstrate that the benefits of requiring businesses to label hazardous chemicals immensely outweighed the costs. VSL is the risk-reward trade-off that people make about their health when considering risky job choices. With it, Viscusi calculated how much more money workers would demand to take on hazardous jobs, boosting calculated benefits by an order of magnitude. His current estimate of the value of a statistical life is $10 million. In this book, Viscusi provides a comprehensive look at all aspects of economic and policy efforts to price lives, including controversial topics such as whether older people's lives are worth less and richer people's lives are worth more. He explains why corporations need to abandon the misguided cost-of-death approach, how the courts can profit from increased application of VSL in assessing liability and setting damages, and how other countries consistently undervalue risks to life.
Pricing Lives proposes sensible economic guideposts to foster more protective policies and greater levels of safety in the United States and throughout the world.
Especially in these turbulent times, good risk management is about exploiting opportunities for growth while protecting value already created. To do this, corporate leaders must, first and foremost, learn to manage the chain of cause and effect between risk and shareholder value. Now Risk shows them how. As vice chairs of the international consulting giant KPMG L.L.P., authors Mary Pat McCarthy and Tim Flynn are uniquely qualified to offer executives and senior managers this ultimate primer on risk and its optimization and management.Packed with case studies and exclusive interviews with executives of many Fortune 500 companies Explores the most successful risk management strategies now in use internationally and offers prescriptions for adapting them to any company
As you embark on the risk assessment process, you could not find a better and more uniquely qualified guide than Douglas M. Henderson. His 20+ years of experience with major consulting firms includes certification as a professional actuary and business continuity planner. His actuarial knowledge makes him an expert in applying mathematical and statistical methods to help organizations to assess and manage risks. He has applied this real-world knowledge of risk to helping businesses prepare for emergencies and business interruptions of all types.
Henderson offers samples and checklists, including case studies using a fictional company in which he conducts a complete qualitative risk assessment and then a complete quantitative risk assessment, then arrives at a set of comparable actions. His explanations and sample problems will help you to:Define risk management terms, such as threat, event, and risk control. Identify threats and determine the worst-case situation your organization could face. Collect information on probability for natural and non-natural threats. Understand the difference between qualitative and quantitative risk assessment. Describe probability and impact levels. Identify exposures and examine specific risk controls. Estimate a financial value for implementing a risk control. Determine when outside professional help is needed.
As an added bonus, Henderson explores the topic of risk controls with you, helping you to evaluate what risk controls will best reduce the probability of disruptive events and reduce their impact should they occur. To insure the best investment of time and money, you will perform a cost-benefit analysis for each possible risk control to make the best choice for your organization.
The book will be of great interest to students and professionals of flood, coastal, river and natural hazard management, as well as risk analysis and insurance, demonstrating multiple academic frameworks of analysis and their utility and drawbacks when applied to real-life FRM contexts.
Introduces quality of protection evaluation of IT Systems Covers the financial, economic, and CO2 emission analysis phase Supplies a multilevel analysis of Cloud-based data centers Details the structures for advanced communication modeling and energy analysis Considers security and energy efficiency trade-offs for the protocols of wireless sensor network architectures Includes case studies that illustrate the QoP analysis process using the QoP-ML Examines the robust security metrics of cryptographic primitives Compares and contrasts QoP-ML with the PL/SQL, SecureUML, and UMLsec approaches by means of the SEQUAL framework
The book explains the formal logic for representing the relationships between security mechanisms in a manner that offers the possibility to evaluate security attributes. It presents the architecture and API of tools that ensure automatic analysis, including the automatic quality of protection analysis tool (AQoPA), crypto metrics tool (CMTool), and security mechanisms evaluation tool (SMETool).
The book includes a number of examples and case studies that illustrate the QoP analysis process by the QoP-ML. Every operation defined by QoP-ML is described within parameters of security metrics to help you better evaluate the impact of each operation on your system's security.
Beginning with mean-variance analysis and the capital asset pricing model, the authors give a comprehensive and detailed account of factor models, which are the key to successful risk analysis in every economic climate. Topics range from the relative merits of fundamental, statistical, and macroeconomic models, to GARCH and other time series models, to the properties of the VIX volatility index. The book covers both mainstream and alternative asset classes, and includes in-depth treatments of model integration and evaluation. Credit and liquidity risk and the uncertainty of extreme events are examined in an intuitive and rigorous way. An extensive literature review accompanies each topic. The authors complement basic modeling techniques with references to applications, empirical studies, and advanced mathematical texts.
This book is essential for financial practitioners, researchers, scholars, and students who want to understand the nature of financial markets or work toward improving them.
Focusing on modern advances and innovations in the field of decision analysis (DA), Breakthroughs in Decision Science and Risk Analysis presents theories and methods for making, improving, and learning from significant practical decisions. The book explains these new methods and important applications in an accessible and stimulating style for readers from multiple backgrounds, including psychology, economics, statistics, engineering, risk analysis, operations research, and management science.
Highlighting topics not conventionally found in DA textbooks, the book illustrates genuine advances in practical decision science, including developments and trends that depart from, or break with, the standard axiomatic DA paradigm in fundamental and useful ways. The book features methods for coping with realistic decision-making challenges such as online adaptive learning algorithms, innovations in robust decision-making, and the use of a variety of models to explain available data and recommend actions. In addition, the book illustrates how these techniques can be applied to dramatically improve risk management decisions. Breakthroughs in Decision Science and Risk Analysis also includes:An emphasis on new approaches rather than only classical and traditional ideas Discussions of how decision and risk analysis can be applied to improve high-stakes policy and management decisions Coverage of the potential value and realism of decision science within applications in financial, health, safety, environmental, business, engineering, and security risk management Innovative methods for deciding what actions to take when decision problems are not completely known or described or when useful probabilities cannot be specified Recent breakthroughs in the psychology and brain science of risky decisions, mathematical foundations and techniques, and integration with learning and pattern recognition methods from computational intelligence
Breakthroughs in Decision Science and Risk Analysis is an ideal reference for researchers, consultants, and practitioners in the fields of decision science, operations research, business, management science, engineering, statistics, and mathematics. The book is also an appropriate guide for managers, analysts, and decision and policy makers in the areas of finance, health and safety, environment, business, engineering, and security risk management.
- Applications of NDT methods related to cultural heritage structures;
- Materials like ceramics, polymer and composites;
- Glass panels;
- Steel structures;
- Wind turbines, and
- Aerospace structures.
Other subjects include the monitoring of 3D-printed components, self-healing mechanisms in concrete, and applications of NDT in biological materials.
Emerging Technologies in Non-Destructive Testing VI provides insight in the latest developments in the different techniques with a huge social impact. In addition, it facilitates the exchange of ideas among scientists and the industry, disseminating academic knowledge to society – and the other way around: giving feedback from the experience of practitioners to academia.
The book begins by presenting a series of fictitious scenarios each resulting in mass destruction and fatalities. These are each followed by actual news stories that support the scenarios and demonstrate that the proposed events—seemingly unthinkable—have the potential to occur. Next, the author identifies two drivers in the practice of emergency management and general preparedness today that constitute our view of the future and the new face of risk. The first is the Disaster Halo Effect—the idea that modern threats exhibit more than one event. The second is the worldview of our nation as a Market State focused on the trading of goods, services, and ideas among the nation-states. The book also reviews the history of preparedness and discusses its relationship with large-scale threats, establishing that hindsight bias has hurt our ability to plan and respond to the unexpected.
The chapters that follow explore what is needed to better cultivate, design, develop, and operate emerging management and preparedness thinking in the current environment. Each chapter begins with key terms and objectives and ends with thought-provoking questions. Introducing a new paradigm of thought that takes into account the chief influencers of global threats, the book arms emergency and business operations managers with the ammo needed to successfully confront emerging threats in the 21st century.
Risk Arbitrage is the definitive guide to the field and features a comprehensive overview of the theory, techniques, and tools that traders and risk managers need to be effective. This new edition is completely updated and fully revised to reflect the changes to laws and technology and includes new case studies and a detailed discussion of computer-based trading systems. Readers gain deep insight into the factors and policies that affect merger transactions, and the new developments that allow individuals to compete with professionals in managing risk arbitrage portfolios. The book provides techniques for computing spreads and determining risk, with practice exercises that allow readers to become confident with new methods before using them professionally.
The current wave of corporate mergers, acquisitions, restructurings, and similar transactions has created unprecedented opportunities for those versed in contemporary risk arbitrage techniques. At the same time, the nature of the current merger wave has lent such transactions a much higher degree of predictability than ever before, making risk arbitrage more attractive to all types of investors. Risk Arbitrage provides the essential guidance needed to participate in the business.Get up to date on the most recent developments in risk arbitrage Examine new mergers and the legal changes that affect them Learn how computers and trading systems have affected competition Use the tools that enable risk determination and spread computation
Both the growth in hedge funds and the changing nature of the merger and acquisition business have affected risk arbitrage processes and techniques. For the finance professional who needs expert guidance and the latest information, Risk Arbitrage is a comprehensive guide.
Written by one of the leading experts in the field, these lecture notes serve as a valuable introduction to some of the most frequently used methods in non-life insurance. They will be of particular interest to graduate students, researchers and practitioners in insurance, finance and risk management.