Enterprise Risk Management

Gregory Monahan is a consultant and the former head of risk practice for SAS Australia. His consulting clients include SAS Australia/New Zealand, and the University of New South Wales. While at SAS Australia, he helped define and execute the marketing strategy for risk management products, primarily credit and operational risk. In addition, he helped develop the first version of the SAS Credit Risk Management Solution.

• Preface. Acknowledgments. Introduction. Chapter 1. Defining Enterprise Risk Management. Management. Enterprise Risk management.  Chapter 2. Strategic Objectives. Financial Objectives. Market objectives. Operational Objectives. Note on the Interdependence of objectives.  Chapter 3. At-Risk Concept. A very Simple Distribution. A Slightly More Interesting Distribution. Location of the Distribution. Basic Statistical Measures. At-Risk Measure.  Chapter 4. SOAR (the Methodology): Strategic Objectives at Risk. SOAR Methodology Components. SOAR Process.  Chapter 5. SOAR (the Process). Chapter 6. Set Metrics for Defined Strategic Objectives. Why Measure? Classes of metrics. Setting Metrics. Examples of Metrics. Setting Target Values for Metrics.  Chapter 7. Observe Metric Values. Observation Methods. Recording Observations of Metrics. Frequency of Observation. Triggers. Chapter 8. Analyze Movements in Metrics. Conducting the Analysis. Validating the Data. Validating Metric Choice. Reporting Findings.  Chapter 9. React to the Metric Analysis. Record the Rationale for Your Reaction. Simple Task of Reacting According to the Measures. Confidence. Difficult Task of Managing Human Behaviors. Chapter 10. SOAR Dashboard. Today's Dashboard. SOAR Black Box Recorder. Chapter 11. Existing Enterprise Risk Management Approaches. Six Sigma. Balanced Scorecard. COSO. Chapter 12. Regulation and Compliance. Sarbanes-Oxley Act. Basel II. AS/NZS 4360:2004: Risk Management. Organizational Risk Management Policy. Chapter 13. Application of the Concept of “Shifting the Distribution”. GE. Bank Treasury Operations. Humans in Daily Life. Airlines. One Other Example. Chapter 14. Implementing the SOAR Methodology. Resourcing the Enterprise Risk Management Office. Applying the SOAR Process. Chapter 15. SOAR in Action Example. Step 1. Set (Metrics). Step 2. Observe (End-of-Year Metric Values). Step 3. Analyze (Movements in Metric Values). Step 4. React (to the End-of-Year Analysis). Conclusion. Appendix: SOAR Methodology FAQ. Resources. Index.