Enterprise Risk Management

The book helps readers to answer a pressing question for businesses: how can they evaluate risks and opportunities to develop appropriate risk-adjusted strategies that allow them to generate maximum profit at acceptable risk levels?

This book focuses on a hands-on approach to risk management which includes a step-by-step guide on how to identify, analyze, quantify and aggregate various risks in organizations. It guides the reader through what-if simulation and scenario analyses as well as Monte Carlo simulations in Excel with applications to traditional non-financial businesses and platform companies like Spotify. This management-oriented perspective sets it apart from often compliance-related textbooks, which mostly focus on financial industries. Its approach is applicable to a wide range of industries and based on a strategic and value-based view of balancing risks and opportunities in businesses. The mathematical and technical details are presented in an easy-to-follow format and illustrated throughout with examples and simple calculations. Additional material for lecturers and students (exercises, cases, templates) is provided online.

Risks, Opportunities, and Enterprise Risk Management. - Theories of Decision-Making Under Risk Heuristics and Biases in Enterprise Risk Management. - Methods of Decision-Making under Risk. - Risk Quantification, Risk Modelling, Risk Aggregation, and Model Risks. - Risk Metrics and Risk Measures. - Strategic Perspective on Enterprise Risk Management. - Operational Perspective on the ERM Process. - Strategy, Resilience, Robustness, Sustainability, and ERM. - Value-Based Management and Enterprise Risk Management. - Enterprise Risk Management and Business Planning. - Organizational Aspects of Enterprise Risk Management. - Case Studies: Risk Analysis, Company Valuation, and Strategy Valuation.