A new book called "Enterprise Risk Management: From Incentives to Controls" discusses the importance of integrating risk management into the culture and operations of a business. The book is written by James Lam, president of James Lam & Associates, an independent risk-advisory firm.
Broken down into four parts, the first, "Risk Management in Context," discusses the importance of striving for balance between risk and return, and why risk management is important today.
The second, "The Enterprise Risk Management Framework," explains the rationale for integrating risk-management processes, and outlines seven building blocks for developing an enterprise program. It also delves into the role of the chief risk officer, and how it has changed.
The third section, "Risk Management Applications," discusses credit, market and operations risks as well as how risk management has evolved from a control function to a function that enables performance optimization. The last section takes a look at the future of risk management, "with respect to people and technology."