Walker (Northwestern U.) describes the different types of risks businesses face both externally and internally and explains the competitive advantage of actively embracing risk management. Case studies illustrate how companies survived embedded risks to the enterprise, operational risks, contagion, and the financial crisis. Appropriate for executives, end of chapter questions suggest the book also could serve as an MBA text. Annotation ©2013 Book News, Inc., Portland, OR (booknews.com)
This book develops the notion that companies can succeed on the basis of risk management, much as companies compete on efficiency, costs, labor, location, and other dimensions. The reality of risk and how it impacts companies is that it is much more definite, often catastrophic and looks more like a shock. This is striking, as a difference between firms on risk different than a marginal difference in operating efficiencies, for example. Competing on Risk Management requires a discipline, a commitment to using information and recognizing shocks and then acting upon those to redistribute assets. This book will examine how leading firms that compete on risk have done this and showcase best practices and impacts to the capital structure of firms and their organizational formation.
