Risk Management: Fundamentals, Theory, and Practice in Asia

This book provides a systematic and comprehensive approach to risk management theory, distinguishing it from academic fields like insurance theory. It builds an independent risk financing theory that goes beyond insurance. The book discusses enterprise risk management (ERM) and its different perspectives, with outlines tailored to specific purposes. Following the Enron and WorldCom scandals, laws such as the SOX Act and the Financial Instruments and Exchange Law were enacted, leading to the development of ERM frameworks by organizations like COSO and ISO. The author sees this competition as an opportunity to systematize RM theory and advance it as an independent discipline. Additionally, the book emphasizes the importance of businesses having comprehensive and systematic ERM for managing risks associated with their activities, particularly in the face of recent events like the Great East Japan Earthquake and increasing pandemic and cyber risks.

Format: Paperback / softback
Length: 248 pages
Publication date: 27 November 2022
Publisher: Springer Verlag, Singapore

This book systematically and comprehensively outlines risk management theory while distinguishing it from academic fields such as insurance theory. In addition, the book builds a risk financing theory that is independent of insurance theory. Until now, risk management (RM) theory has been discussed while the framework of the theory has remained unclear. However, this book, unlike previous books of this type, provides risk management theory after presenting a framework for it. Enterprise risk management (ERM) is seen differently depending on one's position. For accountants, it is a means for internal control to prevent accounting fraud, whereas for financial institutions, it quantifies the risk that administrators can take to meet supervisory standards. Therefore, most of the ERM outlines are written to suit the intended uses or topics, with no systematic RM overviews. This book discusses a systematic RM theory linked to the framework of it, unlike previous books that were written according to topic. After the Enron scandal in December 2001 and WorldCom accounting fraud in June 2002, several laws were enacted or revised throughout the world, such as the SOX Act (Sarbanes-Oxley Act) in the United States and the Financial Instruments and Exchange Law and Companies Act in Japan. In this process, the COSO (Committee of Sponsoring Organizations of the Treadway Commission) published their ERM framework, while the ISO (International Organization for Standardization) published their RM framework. The author believes that the competition between these frameworks was an opportunity to systematize RM theory and greatly develop it as an independent discipline from insurance.

On the other hand, the Great East Japan Earthquake that occurred on March 11, 2011, caused enormous losses. Also, the Fukushima nuclear accident in March 2011 further exacerbated the situation. These disasters highlighted the importance of risk management and the need for effective risk management strategies.

The book discusses a range of risk management topics, including risk identification, risk assessment, risk mitigation, and risk monitoring. It also covers risk financing techniques, such as insurance, derivatives, and capital markets. The book emphasizes the importance of risk management in all aspects of business, including finance, operations, and strategy.

One of the key strengths of the book is its comprehensive coverage of risk management theory and practice. It provides a clear and detailed explanation of the various risk management frameworks and approaches, including the COSO ERM framework and the ISO RM framework. The book also includes case studies and examples to illustrate the application of risk management in real-world situations.

Another important aspect of the book is its emphasis on the role of risk management in decision-making. It highlights the importance of considering risk factors in decision-making processes and the potential consequences of ignoring risk. The book provides guidance on how to integrate risk management into decision-making processes and how to develop risk management strategies that are aligned with organizational goals and objectives.

In conclusion, this book is a valuable resource for anyone interested in risk management theory and practice. It provides a comprehensive and systematic approach to risk management, covering a range of topics and providing practical guidance on how to implement effective risk management strategies. Whether you are a business professional, a student, or a researcher, this book will help you understand the importance of risk management and develop the skills and knowledge needed to manage risk effectively.

Weight: 421g
Dimension: 235 x 155 (mm)
ISBN-13: 9789811634703
Edition number: 1st ed. 2021