Simplifying Risk Management: An Evidence-Based Approach to Creating Value for Stakeholders

The recent experience of Covid-19 has increased attention paid to risk management at an organizational level. This book challenges two trends in the practice of risk management: treating risk management primarily as a compliance issue and using qualitative risk assessment tools that have no proven effectiveness. It outlines a simple, quantitative approach to risk management that refocuses attention on treating risks and presents choices about risk treatment as normal business decisions.

Format: Hardback
Length: 178 pages
Publication date: 25 April 2022
Publisher: Taylor & Francis Ltd

The past few decades have witnessed a significant increase in the importance of risk management at the organizational level, as evidenced by the widespread adoption of legislation, regulations, international standards, and best practices guidelines. The recent COVID-19 pandemic has further emphasized the need for effective risk management strategies. While there has been a growing interest in risk management, practitioners in the field are not adequately supported with suitable books that can guide them in their work or challenge them in their professional development.

This book aims to provide a comprehensive and contextual understanding of risk management within organizations. It seeks to challenge two prevailing trends in the practice of risk management:

• The perception of risk management as merely a compliance issue within the broader context of corporate governance.
• The widespread reliance on qualitative risk assessment tools, such as "heat maps," without any demonstrable effectiveness.

These trends have led to a significant emphasis on developing formalized systems for identifying and analyzing risks. However, there is limited evidence to suggest that these efforts are translating into practical and cost-effective risk management practices. Instead, there seems to be a preoccupation with the risks themselves, rather than a focus on taking positive actions that can benefit stakeholders.

This book presents a straightforward and quantitative approach to risk management that refocuses attention on treating risks as part of normal business decisions. It offers a range of options for risk treatment and encourages organizations to approach risk management as a proactive and strategic endeavor. By adopting a quantitative approach, this book aims to provide practitioners with the tools and frameworks they need to make informed decisions about risk management and implement effective strategies to mitigate potential risks and maximize opportunities.

In conclusion, the recent trends in risk management have highlighted the need for a more comprehensive and contextual approach to the field. This book seeks to address the challenges faced by practitioners and provide a practical and effective framework for risk management that can help organizations navigate the complex and ever-changing landscape of risk.

Weight: 548g
Dimension: 229 x 152 (mm)
ISBN-13: 9781032125626