1. Risk Management: A General View

  1. Ron S. Kenett PhD, BSc Chairman CEO Research Professor Professor Associate Director Editor in Chief President1,2 and
  2. Yossi Raanan PhD, BSc Senior Consultant Strategic Partner Senior Lecturer former dean head chairman director3,4
  1. Ron S. Kenett PhD, BSc Chairman CEO Research Professor Professor Associate Director Editor in Chief President1,2,
  2. Richard Pike CCH SWORD Product Director and
  3. Yossi Raanan PhD, BSc Senior Consultant Strategic Partner Senior Lecturer former dean head chairman director3,4

Published Online: 19 AUG 2010

DOI: 10.1002/9780470972571.ch1

Operational Risk Management

Operational Risk Management

How to Cite

Kenett, R. S., Pike, R. and Raanan, Y. (2010) Risk Management: A General View, in Operational Risk Management (eds R. S. Kenett and Y. Raanan), John Wiley & Sons, Ltd, Chichester, UK. doi: 10.1002/9780470972571.ch1

Editor Information

  1. 1

    KPA Ltd, Raanana, Israel; University of Turin, Italy

  2. 2

    NYU-Poly, Center for Risk Engineering, New York, USA

  3. 3

    KPA Ltd, Raanana, Israel

  4. 4

    College of Management, Academic Studies, Rishon Lezion, Israel

Author Information

  1. 1

    KPA Ltd, Raanana, Israel; University of Turin, Italy

  2. 2

    NYU-Poly, Center for Risk Engineering, New York, USA

  3. 3

    KPA Ltd, Raanana, Israel

  4. 4

    College of Management, Academic Studies, Rishon Lezion, Israel

Publication History

  1. Published Online: 19 AUG 2010
  2. Published Print: 22 OCT 2010

ISBN Information

Print ISBN: 9780470747483

Online ISBN: 9780470972571

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Keywords:

  • enterprise risk management (ERM);
  • operational risk management;
  • risk impact;
  • statistical distribution;
  • statistics

Summary

As a direct result of risk being a statistical distribution rather than a discrete point, there are two main concepts in risk measurement that must be understood in order to carry out effective risk management: risk impact and risk likelihood. In order to mitigate risks the commercial world is developing holistic risk management programmes and approaches under the banner of enterprise risk management (ERM). This framework categorizes risks within the following types: (1) financial, (2) operational, (3) legal/compliance and (4) strategic.This chapter introduces the concept of risk, defines it and classifies it. It also shows the evolution of risk management from none at all to today’s heightened awareness of the necessity to deploy enterprise risk management approaches. The chapter provides the general view of risk to specific areas of operational risk.

Controlled Vocabulary Terms

probability distribution; statistical measures