Fundamentals of Risk Management

 420
Table 36.1
Risk management (RM) responsibilities of the board
 424
Table 36.2
Risk report in a Form 20-F
 427
Table 36.3
Government risk-reporting principles
 430

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FoRewoRD
Importance of enterprise risk 
management
o
rganizations face an increasingly challenging and complex environment in 
which to undertake their activities. Since the third edition of this textbook, the 
consequences of the global financial crisis have continued to challenge public-,
private- and third-sector organizations. To add further complexity, the second
decade of the 21st century has been marked by political instability in many parts of 
the world and the recent decision of the United Kingdom to exit the European Union 
has added further global uncertainty.
It is within this increasingly uncertain environment that organizations are 
required to deliver higher stakeholder expectations, whilst fulfilling greater corporate 
governance requirements in relation to ethical and social responsibility. For example, 
legislation has been introduced in many countries to broaden the scope of require-
ments regarding management of bribery risk and the avoidance of modern slavery.
Given all these developments, the updating of this textbook to place greater
emphasis on the importance of enterprise risk management (ERM) to organizational 
success is very timely. Successful ERM, including the protection of corporate reputa-
tion, continues to be a business imperative for all organizations. A successful ERM 
initiative enhances the ability of an organization to achieve objectives and ensure 
sustainability, based on transparent and ethical behaviours.
The Institute of Risk Management (IRM) has long supported the development of 
ERM, as a contribution to development and delivery of successful business models 
and strategy for all types of organizations. The training courses and qualifications 
offered by the IRM enable risk professionals and others to support their employer 
and/or clients in achieving maximum benefit from an ERM initiative.
Although this textbook has been designed specifically for the IRM International 
Certificate in Enterprise Risk Management, the contents outline approaches to 
achieving successful ERM that will support any type of organization in their efforts 
to deliver corporate objectives and satisfy stakeholder expectations. This textbook
is a valuable resource for all organizations and anyone with an interest in risk
management.