Fundamentals of Risk Management

423
Sarbanes–Oxley Act of 2002 
425
Risk reports by US companies 
426
Charities’ risk reporting 
428

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Contents
xiv
Public-sector risk reporting 
429
Government report on national security 
430
Appendix A: Abbreviations and acronyms
 
433
Appendix B: Glossary of terms
 
436
Appendix C: Implementation guide
 
446
Index
 
449

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LIst oF FIgURes
Figure 1.1
Risk likelihood and magnitude 
22
Figure 2.1
Attachment of risks 
27
Figure 2.2
Risk and reward 
29
Figure 2.3
Disruptive events and the bow-tie 
33
Figure 4.1
8Rs and 4Ts of (hazard) risk management 
52
Figure 4.2
Risk management sophistication 
55
Figure 6.1
IRM risk management process
 73
Figure 6.2
Components of the RM context
 75
Figure 6.3
COSO ERM framework
 77
Figure 6.4
Risk management process from ISO 31000
 79
Figure 7.1
Three components of context
 83
Figure 10.1
Risk attitude matrix
 129
Figure 11.1
Bow-tie representation of risk management
 133
Figure 11.2
Bow-tie and risks to premises
 135
Figure 12.1
Personal risk matrix
 144
Figure 12.2
Inherent, current and target levels of risk
 145
Figure 13.1
Loss control and the bow-tie
 156
Figure 14.1
Risk matrix for opportunities and hazards
 163
Figure 15.1
Risk matrix and the 4Ts of hazard management
 177
Figure 15.2
Risk versus reward in strategy
 183
Figure 15.3
Opportunity risks and risk appetite
 184
Figure 16.1
Types of controls for hazard risks
 186
Figure 16.2
Bow-tie and types of controls
 189
Figure 16.3
Hazard risk zones
 191
Figure 17.1
Role of captive insurance companies
 204
Figure 18.1
Disaster recovery timeline and costs
 209
Figure 18.2
Model for business continuity planning
 210
Figure 19.1
Business development model
 225
Figure 20.1
Components of the business model
 233
Figure 20.2
Mapping the components of reputation
 241
Figure 22.1
Risk architecture for a large corporation
 264
Figure 22.2
Risk architecture for a charity
 266
Figure 23.1
Illustration of control effect
 271
Figure 23.2
Cost-effective controls
 272
Figure 23.3
Learning from controls
 273
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xvi
List of figures
Figure 23.4
Risk and reward decisions
 274
Figure 24.1
Risk maturity demonstrated on a matrix
 300
Figure 25.1
Risk appetite, exposure and capacity (optimal)