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Fundamentals of Enterprise Risk Management: How Top Companies Assess Risk, Manage Exposure, and Seize Opportunity 16582nd Edition

4.2 out of 5 stars 12 customer reviews
ISBN-13: 978-0814414927
ISBN-10: 0814414923
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Product Details

  • Hardcover: 320 pages
  • Publisher: AMACOM; 16582nd edition (August 5, 2009)
  • Language: English
  • ISBN-10: 0814414923
  • ISBN-13: 978-0814414927
  • Product Dimensions: 9 x 6.1 x 1.2 inches
  • Shipping Weight: 1.4 pounds
  • Average Customer Review: 4.2 out of 5 stars  See all reviews (12 customer reviews)
  • Amazon Best Sellers Rank: #1,304,441 in Books (See Top 100 in Books)

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Customer Reviews

Top Customer Reviews

Format: Hardcover Verified Purchase
I purchased this book to gain foundation knowledge in ERM and Corporate Risk Management. My greatest concern with these types of texts is that they provide tons of theory and little practical application. I selected this book because NC State has it as a suggested reading for its ERM Masters courses.

Bottomline, if you are looking for a book to give you the theory and then provide concrete practical application, this is the book you want. If you are looking for a starting point to get your hands around the major topis of ERM, this is the book you want. Basically, the text allowed me to diagram a future state ERM program for my company, and challenge potential consultants to work with us on the implementation project.

Very well written.
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Format: Kindle Edition Verified Purchase
What I really like about this book is the snippets of case studies throughout. Many books talk about what risk managers did wrong, but Hampton talk more about what the risk managers have done right. There are many ways to do something wrong, but not many ways to do something right. This is what tipped the scale for me from 3 stars to 4 stars. What I have also appreciated is that Hampton spent time to write about what the organization should look like to manage risks.

Other than that the book is not contributing much more. It gives average views on the types of risk you could encounter and how to manage a risk database (the Riskonnect tool being developed), with the dependencies between the risks. I feel however that it fell short in the database and dependencies that have been presented. All the risks are treated qualitatively, and as exact/precise figures instead of uncertainties. Also the relationships between the risks are not properly formulated (using formulas or some kind logic such as boolean).

For the case studies alone I would recommend this book, but I would recommend other sources for the risk analysis portions.
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Format: Hardcover
Fully managing enterprise risk means more than insuring against fire, floods and other hazards. Companies commonly have many uninsured exposures to loss from tougher competition, rapid technological change, financial instability and regulatory sanctions. That is why business leaders in growing numbers have adopted enterprise risk management (ERM), a flexible way to identify and respond to a corporation's total range of risks. Not all risks are all bad. Some are worth taking. Firms that practice enterprise risk management can minimize their potential peril while taking their best calculated risks, the ones most likely to increase sales and profits. Enterprise risk management will not eliminate risk. It did not prevent the failures of major financial institutions during the 2008 crisis. But author John J. Hampton cogently upholds the practice, noting that a disciplined, detailed approach is critical to making ERM actually work. He favors a customizable model of risk management - including a central monitoring function - that can work for a company of any size. getAbstract recommends this book to business leaders seeking a more reliable way to identify each meaningful risk, to distinguish good risks from bad ones and to cover their downsides as much as possible.
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Format: Hardcover
This book is a systematic description of contemporary Enterprise Risk Management with new methodology. It is so visual and practical showing readers the qualities that managers all over the world need to get a clear idea of ERM and its benefits. Many real cases are included, even from Russia. But the most interesting part is "ERM Technology," a new approach to diagnose and visually present the family of core risks of any business. Supported by the ERM implementing instructions, this methodology makes the book a really practical guide for anyone interested in corporate risks. More than that, ERM realities are analyzed in the clear context of the modern challenges of making decent profits in an honest and ethical framework. Written in a clear language and supported by many illustrations (pictures and stories), I am sure that the book of Professor J. Hampton will be highly valuable to risk managers, general managers, and students of business globally.

Valery N. Vyatkin,
2003-2005 First Vice President
Russian Risk Management Society (RusRisk)
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Format: Hardcover
The activities described as risk management have been evolving over the past decades. Ask a finance person what risk management is and you will hear about hedging by diversification through financial instruments such as derivatives and stock pools. Ask an insurance person the same question and you will hear about insurance products. More recently accountants weight in with COSO and with discussions about governance and internal controls. IT-people think they are the risk managers of an enterprise. The logical path for all of these views is that there is, or needs to be, a central management function that has as a goal the optimization of a single ultimate metric of the success of the enterprise. Can the risk of loss from business interruption when a plant burns be hedged with insurance? Of course. Can the financial consequence also be hedged with a financial instrument other than insurance? Again, yes. But firm managers who strategically locate a set of plants in different areas also hedge the risk. The point is that there are many ways to manage the risk of an enterprise and a discussion that focuses too heavily on one approach does not advance the evolution of knowledge. Jack Hampton's text provides an advance in the evolving field of enterprise risk management. There is a heavy focus on the insurance and finance portions of the picture but just as all enterprises differ, there is no fixed answer to how to correctly weight the tools of risk management; it is an advance that he provides a picture of the variety of tools and how they should be used in combination.

J. Barrese
Chair, School of Risk Management
St. John's University
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