Fundamentals of Risk Management

Index
453
capacity for risk 150–51
cost containment 154, 156
cost of risk controls 270–73
debt risk 106
fraud 275–77
historical liabilities 276–77
long to short term risks 141
riskiness index 164
Sarbanes-Oxley Act 425–26
scrutiny of 265
significance of impact 147
stakeholders and 353
for strategic plans 86
see also FIRM risk scorecard
financial crisis, global
bank operational risks 360–61
capacity for risk and 150–51
causes of 368–69
effect of global crisis 7–8
global risk aggression and 105
London 2012 Olympics 372–73
opportunity in 169
perception of risk 129–30
triggers 36
financial institutions
Basel II sound practices 363–64
corporate governance 343–44
ERM and 101–02
IT failures and stakeholders 358
measuring risk 364, 366
minimizing compliance risks 43–4
operational risk developments 367–69
operational risks and 360–62
risk classification 142
risk management development 48–9
risk management specialism 49, 50
UK passporting 32
Financial Reporting Council (FRC) 339, 407, 
424
risk management standard 73, 74
fire
firefighters tolerating risk 148
property protection 278–79
sprinklers and 193
FIRM risk scorecard 65, 100
appetite for risk and 312
features of 136, 137–38
hazard risk and 154–55
internal/external context 84–5, 86
magnitude of risk 153
reputation and 240–43
risk classification systems 133, 134–38
riskiness index 164–67
significance of risks 149, 178
tests for impact significance 147
types of risk 140
see also finances; infrastructure; marketplace; 
reputation
flu pandemic 212–13
FOIL approach
embedding risk management 297
fragmented, organized, influential, leading (FOIL) 
approach 56
fraud
Basel II and 361
detective controls 194–95
financial control environment 86
hazard risks of 25
hierarchy of controls for 188
operational risks and 365
pension funds 276
risk controls 272, 275–77
spreading security 404–05
gambling
corporate social responsibility and 239
global financial crisis see financial crisis, global
governance, corporate
audit committees 402–04
banks 343–44
case studies 336–37
evaluating board performance 347–49
external context 84–5
government agencies and 344–47
LSE framework 342–43
OECD principles of 340–42
purpose and requirements of 339–40
reputation and 235
structure of 350
governance, risk and compliance (GRC) 8, 110
emergence of 113
successful management 291
three lines of defence 417–19
government agencies
corporate governance of 344–47
Nolan principles 346
Greenpeace 237
Guide Dogs NSW/ACT
residual risks 117
hazard and operability (HAZOP)
risk assessment and 124
hazard/pure risk 6
4Ts: tolerate, treat, transfer, terminate 148–49
8Rs of risk management 51, 52
appetite for risk 307
assessment of 154–55
car ownership example 37–8
classification of 140
computer system example 19
definition of 17–8
impact of 25–6

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