1st Edition
by Terje Aven (Author), Shital Thekdi (Author)
Enterprise Risk Management: Advances on its Foundation and Practice
relates the fundamental enterprise risk management (ERM) concepts and
current generic risk assessment and management principles that have been
influential in redefining the risk field over the last decade. It
defines ERM with a particular focus on understanding the nexus between
risk, uncertainty, knowledge and performance.
The book argues
that there is critical need for ERM concepts, principles and methods to
adapt to the latest and most influential risk management developments,
as there are several issues with outdated ERM theories and practices;
problems include the inability to effectively and systematically balance
both opportunity and downside performance, or relying too much on
narrow probability-based perspectives for risk assessment and
decision-making. It expands traditional loss-based risk principles into
new and innovative performance-risk frameworks, and presents fundamental
risk principles that have recently been developed by the Society for
Risk Analysis (SRA). All relevant statistical and risk concepts are
clearly explained and interpreted using minimal mathematical notation.
The focus of the book is centered around ideas and principles, more than
technicalities.
The book is primarily intended for risk
professionals, researchers and graduate students in the fields of
engineering and business, and should also be of interest to executive
managers and policy makers with some background in quantitative methods
such as statistics.
