Implementing Enterprise Risk Management: From Methods to Applications (Wiley Finance)

As a keen follower of James Lam’s writings over the years, I found Implementing Enterprise Risk Management: From Methods to Applications to be an essential read for senior risk management practitioners as well as for executives or board members with risk governance responsibilities. While much has changed since Lam’s first book, Enterprise Risk Management: From Incentives to Controls, especially in the financial services industry post-Crisis, many of the foundational concepts Lam wrote about years ago are still relevant now and he breathes fresh, new insights and examples for practitioners to implement Enterprise Risk Management (ERM) in a practical way in his most recent book.As a Chief Risk Officer (CRO) at a large financial services company, I’ve seen first-hand how ERM implemented successfully can help elevate the culture, results and intelligence of an organization in a positive way. We probably take for granted these days that ERM has become such a common discipline that has been implemented across multiple industries now; however, this was not such the case fourteen years ago when many of us practitioners were looking for someone to help lead the way- and that person was (and still is) James Lam. He is a visionary leader and an outstanding role model for all current and aspiring Chief Risk Officers.Regarding James Lam’s newest book, I particularly enjoyed reading the section on The Rise of the CRO. It’s always more ‘real’ when you can read about experiences from current or past CROs, how they got to their role and how their career paths from CRO evolved- all of which I found to resonate well with my own journey as a CRO. Thank you James Lam for continuing to be a true thought leader and pioneer in the field of risk management.

James Lam's seminal work, "Implementing Enterprise Risk Management," stands as the definitive guide in the field of ERM. With Lam's unparalleled expertise, insights, examples, and templates, this book serves as both a comprehensive textbook for newcomers and a strategic go-to manual for seasoned professionals.From Foundations to FrontiersLam masterfully covers the A to Z of ERM, starting with "ERM in Context" to lay down the foundational concepts, current trends, and the importance of a performance-based approach. The journey continues through the nuts and bolts of "Implementing an ERM Program," where Lam offers actionable insights into creating a risk-aware culture and a resilient ERM framework.Governance, Risk Assessment, and BeyondThe book delves into "Governance Structure and Policies," highlighting the critical roles of the board and the CRO (a position title he invented), and transitions into "Risk Assessment and Quantification," where Lam's expertise in risk-control self-assessments and quantification models shines. The sections on "Risk Management" and "Risk Monitoring and Reporting" are replete with strategies for integrating risk into strategic planning and operational monitoring, underscored by the innovative "Lamsian Risk Appetite Dashboard."A Toolkit for the ERM PractitionerBeyond the wealth of knowledge, Lam equips readers with a suite of tools, including ERM templates and outlines, making this book an invaluable resource for practical implementation. The focus on feedback loops and the inclusion of real-life case studies and anecdotes enrich the narrative, offering a holistic view and key ingredients of a successful ERM in action.In Summary"Implementing Enterprise Risk Management" is more than just a book; it's a roadmap to ERM mastery. Whether you're an individual practitioner or part of a larger ERM team, Lam's guide is an essential addition to your professional library, offering insights and strategies that are applicable across industries and organizational sizes.

The book is very helpful to us as we implement ERM at our organization. I am however disappointed that the book binding fell apart as I read the first 100 pages...not the quality I would have expected

If there is one book on ERM that new (or old) practioners should have at the ready, it is this one. Well written, on point and a ton of practical implementation guidance - the title truly says it all. As a ex-consultant in ERM and now a Head of Department - Risk & Insurance for a global chemicals company, I have read alot of books, articles and thought leadership on risk management since the late 1990's. What makes this book different is its attention to quite specific implementation guidance rather that aspirational messages, vague high level recommendations and an ignorance of quantitative risk assessment. It could have been easy to turn this book into a giant collection of checklists but the style of writing is compelling to keep reading along - almost every paragraph kicks off with some kind of hook eg "It is often said that those who don't learn from past mistakes are destined to repeat them..." before moving into a discussion on loss/event databases.I was tempted to use this book initially as yet another reference until I saw Chapter 11 "Risk of the CRO". As someone who is familiar with much of the theory and practice of ERM this was the highlight for me. CROs from a mix of industries were profiled, some great insights into what worked for them and what they would have done differently and James Lam picked up a couple of excellent thematic insights into what made them successful. I didn't expect this book to be an inspirational read but there it is.The only qualm - and this is minor - is that we need to expand our discussion on implementing quantitative risk assessment methods and why they are vital particularly for non-FSI organizations. ERM is a rapidly evolving discipline and the more grounded we are in objective data and analysis generally the better.