Enterprise Risk Management Models ||

Enterprise risk management has always been important. However, the events of the 21st Century have made it even more critical. The top level of business management became suspect after scandals at ENRON, WorldCom, and other business entities. Financially, many firms experienced difficulties from bubbles. The problems of interacting cultures demonstrated risk from terrorism as well, with numerous terrorist attacks, to include 9/11 in the U.S. Risks can arise in many facets of business. Businesses in fact exist to cope with risk in their area of specialization. Financial risk management has focused on banking, accounting, and finance. We have discussed several aspects of risk, to include information systems, disaster management, and supply chain perspectives. The bulk of this book is devoted to presenting a number of operations research models that have been (or could be) applied to enterprise supply risk management, especially from the supply chain perspective. --Book Jacket Preface Contents 1 Enterprise Risk Management in Supply Chains Unexpected Consequences Supply Chain Risk Frameworks Cases Models Applied Risk Categories Within Supply Chains Process Mitigation Strategies Conclusions Notes 2 Enterprise Risk Management Process Risk Matrix Information System Risk Matrix Application Conclusions Appendix: Controls Numbered as in Text Notes 3 Information Systems Security Risk Definition Frameworks Security Process Best Practices for Information System Security Supply Chain IT Risks Outsourcing Value Analysis in Information Systems Security Objective Hierarchy Overall Objective: Maximize IS Security SMART Analysis Conclusion Notes 4 Enterprise Risk Management in Projects Project Management Risk Risk Management Planning Risk Identification Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning Risk Monitoring and Control Project Management Tools Simulation Models of Project Management Risk Governmental Project Conclusions Notes 5 Natural Disaster Risk Management Emergency Risk Management in China Natural Disaster and Financial Risk Management Natural Disaster Risk and Firm Value Financial Issues Systematic and Unsystematic Risk Investment Evaluation Strategic Investment Risk Management and Compliance Conclusions Notes 6 Disaster Risk Management in China Chinese Earthquake Disaster Management Earthquake Response Chinese Earthquake Response Database Support Example Database Support Data Mining Support Data Mining Process Quantitative Model Support Example Emergency Management Support Systems RODOS System for Nuclear Remediation Chinese Catastrophe Bond Modeling Conclusions Notes 7 Value-Focused Supply Chain Risk Analysis Hierarchy Structuring Hierarchy Development Process Suggestions for Cases Where Preferential Independence Is Absent Multiattribute Analysis The SMART Technique Plant Siting Decision Conclusions Notes 8 Examples of Supply Chain Decisions Trading Off Criteria Case 1: Blackhurst et al. (2008) Value Analysis Case 2: Wu et al. (2006) Value Analysis Case 3: Kull and Talluri (2008) Value Analysis Case 4: Schoenherr et al. (2008) Value Analysis Case 5: Gaudenzi and Borghesi (2006) Value Analysis Conclusions Notes 9 Simulation of Supply Chain Risk Inventory Systems Basic Inventory Simulation Model System Dynamics Modeling of Supply Chains Pull System Push System Monte Carlo Simulation for Analysis Notes 10 Value at Risk Definition The Use of Value at Risk Historical Simulation Variance-Covariance Approach Monte Carlo Simulation of VaR The Simulation Process Demonstration of VaR Simulation Conclusions Notes 11 Chance Constrained Programming Chance Constrained Applications Portfolio Selection Demonstration of Chance Constrained Programming Maximize Expected Value of Probabilistic Function Minimize Variance Solution Procedure Maximize Probability of Satisfying Chance Constraint Real Stock Data Chance Constrained Model Results Conclusions Notes 12 Data Envelopment Analysis in Enterprise Risk Management Basic Data Multiple Criteria Models Scales Stochastic Mathematical Formulation DEA Models Conclusions Notes 13 Portfolio Selection Under Fuzzy and Stochastic Uncertainty Fuzzy Random Variables Expected Value for a Fuzzy Random Variable The Mean Ranking Method Hybrid Entropy 14 Possibility Theory Possibilistic Mean Value and Variance Mean Variance Portfolio Selection Model with Safety-First Mean Variance Model and Mean Safety-First Model Hybrid Entropy Based Portfolio Selection Return Optimization Numerical Example Conclusions Notes 14 Business Scorecard Analysis to Measure Enterprise Risk Performance ERM and Balanced Scorecards Small Business Scorecard Analysis ERM Performance Measurement Data Results and Discussion Score Distribution Performance Conclusions Notes References Index