Contents -- About the Author -- Acknowledgement -- Overview -- Introduction -- Chapter 1. Introduction to Risk -- What Is Risk? -- Risk and Uncertainty -- Risk and Volatility -- Concepts of Risk in Business -- Probability of occurrence -- Impact -- Complexity and unpredictability -- Opportunity to control or in.uence -- The Many Dimensions of Risk -- Explicit risk -- Implicit risk -- Finite risk -- Persistent risk -- Risk Combinations -- Absolute risk -- Embedded risk -- Strategic or industry risk -- Infinite risk -- Preferences in Risk Types -- Overview of Business Risks -- Chapter 2. Overview of Risk Decisions -- Market Risk -- Credit Risk -- Operational Risk -- Risk Contagion -- Reputational Risk -- Regulatory Risk -- Risk Severity and Frequency -- Low frequency and low severity -- High frequency and low severity -- Low frequency and high severity -- High frequency and high severity -- Making Risk Decisions and Deploying Capital -- Chapter 3. Dealing With Shocks-Large Scale Risks Impacting Markets and Industries -- Case Questions -- Chapter 4. Operations Pose Embedded Risks to the Enterprise -- Fire at the Plant - Hazard as a Trigger for Operational Risk -- Damage Assessment - Seeking Disconfirming Information -- Philips and the Cell Phone Industry - Embedded Operational Risks -- Nokia Corporation - Background -- Ericsson Corporation - Background -- The Nokia Response - Reacting to the Risk -- The Ericsson Response - Risks Persists -- The Bubble Bursts - Risks Impact the Industry -- Post Bubble: Ericsson and Nokia - Different Risk Treatments, Different Fates -- Supply Chain Risk Require Dynamic Capabilities -- Recovery Efforts Are Critical to Preventing Persistent Risks -- Case Review -- Timeline Corporate Activity/Capability -- Risk Management Lessons -- Proactive information gathering -- Investments in information systems.

Data collection and creation -- Development of risk metrics -- Authority of individuals to respond to information -- Measurement of the competitive landscape -- Identification of alternatives -- Focus on preventing persistence and contagion in risk -- Protection of the firm's profits -- Failures in risk management result in the transfer of assets between firms -- Case Questions -- Chapter 5. Reliance on Technology Increases Operational Risk - Often It Is Not Obvious -- TJX Companies - Background -- A Routine Audit Reveals a Hack -- Hackers Use "War Driving" to Strike TJX -- In Operational Risk, Details Are Critical -- Catching the "SoupNazi" -- Operational Risk Leaves Unclear Liability -- Operational Exposures Have High Leverage - The Cost of a Breach -- Industry Movements to Reduce Operational Risks - Standards in Security -- Market Inefficiencies in the Payments System -- Asymmetric Information Impacts Risk Choices -- The Cost Externalities Can Be Hard to Recover -- TJX in theWake of the Hack -- The Growing Cyber Threat -- Case Review -- Risk Management Lessons -- Operational risk and embedded risk require attention to detail -- Technology has made operational risk highly levered -- Employees are your greatest asset . . . and risk -- Recognize your competencies and seek an outside partner to transfer those operational risks -- Look beyond laws for the best solution to dealing with operational risks in technology -- Case Questions -- Chapter 6. Dealing With Contagion and Persistence in Risks -- The Rise and Fall of Conseco -- Embedded Risks Challenge Insurers - Industry Supply Decreases -- Health Costs Increase - Industry Demand Increases -- Industry Regulation Poses Constant Risks -- Conseco's LTC Business - Background -- The Risk Unfolds - Crisis Occurs -- Containing Risk and Preventing Contagion: Conseco Settles With States on Penalties.

The Current State of Long-Term Care Insurance -- Case Review -- Risk Management Lessons -- Firms can be attractive targets for regulation -- Recognize and remedy wrongs quickly - move on and focus on the long-term goals -- Risk management and recovery from a crisis requires attention to all constituents -- A brand is a promise -- Manage your regulator -- Case Questions -- Chapter 7. Risk Management as a Corporate Competency -- JPMorgan Chase & Co. - Background -- Jamie Dimon: Cost-Cutter Extraordinaire -- Risk Management as a Corporate Focus -- Building the Team for Risk Management -- A Healthy Skepticism -- Credit Markets Bring Innovation and New Risks -- The Bear Roars no More -- The Largest Banking Failure in US History - Washington Mutual -- Risk Management Requires Discipline -- Winning With Risk Management - Superior Outcomes -- Case Review -- Key Behaviors for JPMorgan -- Risk Management Lessons -- Scale risk management polices and measures across the enterprise -- Develop a dynamic and investigative nature to your risk management -- Risk management is important during prosperous times -- Develop an ability to question data - not to dismiss data -- Be willing to take bold decisions - but look to data for guidance -- Case Questions -- Chapter 8. Protecting the Enterprise From Itself - Learning From History, Again -- Societe Generale - Background -- A French Institution -- Pioneering Efforts and a History of Taking Risks -- The Fight for Independence - Taking More Risks -- The Fall of 2007 -- Black Monday for Societe Generale - Risks Are Realized -- Jerome Kerviel - Corporate Culprit -- "The Mine" vs. "Delta One" - Organizational Implications -- Going Big, Taking Bigger Risks -- The Beginning of the End -- The Risk Becomes Real -- Damage Control - Too Little, Too Late -- Risk Revelations and Regulation.

Industry Perspective - Unacceptable Operational Risk -- The Basel Accords - Going Against Best Practices -- Kerviel's Side of the Story - It Involved Many -- The Fight for Independence, Part Deux -- The Recovery Trust -- The French Restoration and Regulatory Power - Increased Regulatory Risks -- More Resignations - More Risks, More Involved -- Case Review -- Risk Management Lessons -- Develop a risk management culture that has multiple layers of safeguards in place -- Recognize moral hazards and motivated agents take steps to minimize these -- Work to overcome optimism bias in your team -- Learn from previous risk lessons - remind your team -- Verify results -- Case Questions -- Chapter 9. Forming an Organization That Competes on Risk: Organizational Implications -- Chapter 10. Developing a Culture for Sound Risk Management -- British Petroleum and Its Beginning -- Risk Brewing and Early Warning Signs -- The Explosion in the Gulf -- Cleaning Up and Growing Costs -- Case Review -- Risk Management Lessons -- Examine your company's history for taking risk -- Examine anomalies in low operating expenses and cash reserves -- Be mindful of the political process and how it can exacerbate your losses -- Set risk management goals for long-term value protection -- Examine your risk-taking relative to the industry and your level of readiness relative to the industry -- Case Questions -- Chapter 11. Toyota: Dealing With Crisis in a Major (Foreign) Market -- Toyota Profile and Background -- The Risk Flashpoint at Toyota -- Timeline of Crisis -- Big Risk, Big Costs -- Controlling for Risk Contagion in Practice -- Case Review -- Toyota ends the high-level quality control task force217 -- Management focus on high growth -- Development of more complex products -- Stretched supply chain -- Change in management and US operations -- Risk Management Lessons.

Perception issues can linger -- Correcting a damaged brand is more difficult and expensive than a technical correction -- Early identification and remedy of risks is best -- Rapid growth (and profits) exacerbate operational risks -- Beware of risks that include a potential victim -- Case Questions -- Chapter 12. Communicating Risk Information in the Enterprise -- Risk Specifics -- Chapter 13. Benefits of Competing on Risk -- Risk Management and the Great Recession of 2008 -- Operational Risk Dominates -- Developing Risk Metrics -- Measuring the Market and Competitors -- Focus on the Details in Risk Management -- Develop Intra-Business Risk Management Functionality -- Consider Contagion and Persistence in Risk Decisions -- Develop Proprietary Risk Information -- Examine Complexity and Market Interconnectedness -- Monitor Your Counterparty -- Align Risk Management With Corporate Strategy -- Diligence in Risk and Diligence in Savings - Avoiding Liquidity Risk -- The World Has Changed -- Risk Management Lessons in Review -- Develop proprietary risk information -- Ready the response for risk -- Set risk management goals for long-term value protection -- Focus on operational and technological risks -- Lead with a culture for active risk management -- Develop redundancy for information in processes and systems -- Measure and manage your brand and reputation -- Bibliography -- Index.