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Enterprise Risk and Opportunity Management

Author Dr. Allan S. Benjamin
Release Date: 2017/02/01
ISBN: 9781119288428
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Book Description

Risk management strategy for the pioneering technological sector

Enterprise Risk and Opportunity Management provides much-needed guidance tailored specifically to the technological sector. While most enterprise risk management guides are written for traditional businesses and finance firms, this book translates effective enterprise risk and opportunity management (EROM) principles into strategies and practices that work for government, nonprofit, and for-profit organizations in the technological space. Originally designed for noncommercial pioneering enterprises like NASA, an entire chapter is now devoted toward applying the methods to profit-making technological enterprises.

A 40-year veteran of the tech sector, Dr. Allan Benjamin outlines risk management strategies for organizations in which the advancement and integration of science and technology within complex systems is necessary for accomplishment of the mission. Commercial EROM strategies do not translate directly when the development and implementation of risky technologies is the organization's primary objective, and clumsy or near-sighted implementation can easily cripple progress. This book provides authoritative guidance tailored to the sector's specialized needs.

  • Maximize opportunity while effectively managing risk
  • Understand the core principles of the technological EROM approach and its interfaces with the management of the organization
  • Comprehend the intricacies of aggregating risks and opportunities from lower to higher levels of the organization
  • Gain expert insights specific to the technology sector
  • Mitigate and control the risk that comes with pursuing discovery

In practice, EROM in this sector involves working with mostly qualitative data, and is characterized by high uncertainty. Managing risk without handicapping the organization requires a specific set of adjustments to traditional EROM, and a more nuanced approach to the idea of "acceptable risk. Balance is key in technological EROM, and Enterprise Risk and Opportunity Management provides foundational guidance, real-world strategy, and enlightening examples for getting it right.

Table of Contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Figures
  5. Tables
  6. Preface
  7. Introduction
  8. Chapter 1: An EROM Primer for Organizations Concerned with Technical Research, Integration, and Operations (TRIO Enterprises)
    1. 1.1 EROM Scope and Objectives for TRIO Enterprises
    2. 1.2 EROM Definitions and Technical Attributes for TRIO Enterprises
    3. Notes
    4. References
  9. Chapter 2: Coordination of EROM with Organizational Management Activities
    1. 2.1 The Executive, Programmatic, and Institutional/Technical Management Functions and Their Interfaces
    2. 2.2 EROM-Relevant Management Activities
    3. 2.3 Coordination of EROM with Management Activities
    4. 2.4 Communication across Extended Partnerships
    5. 2.5 Contribution of EROM to Compliance with Federal Regulations and Directives
    6. Notes
    7. References
  10. Chapter 3: Overview of EROM Process and Analysis Approach
    1. 3.1 Organizational Objectives Hierarchies
    2. 3.2 Populating the Organizational Objectives Hierarchies with Risk and Opportunity Information
    3. 3.3 Establishing Risk Tolerances and Opportunity Appetites
    4. 3.4 Identifying Risk and Opportunity Scenarios and Leading Indicators
    5. 3.5 Specifying Leading Indicator Trigger Values and Evaluating Cumulative Risks and Opportunities
    6. 3.6 Identifying and Evaluating Risk Mitigation, Opportunity Exploitation, and Internal Control Options
    7. Notes
    8. References
  11. Chapter 4: The Development and Utilization of EROM Templates for Performance Evaluation and Strategic Planning
    1. 4.1 Overview
    2. 4.2 Demonstration Example: The NASA Next-Generation Space Telescope as of 2014
    3. 4.3 Example Objectives Hierarchies
    4. 4.4 Risks, Opportunities, and Leading Indicators
    5. 4.5 Example Templates for Risk and Opportunity Identification and Evaluation
    6. 4.6 Example Templates for Risk and Opportunity Roll-Up
    7. 4.7 Example Templates for the Identification of Risk and Opportunity Drivers, Responses, and Internal Controls
    8. 4.8 Upward Propagation of Templates for Full-Scope EROM Applications
    9. 4.9 Application of the Templates to Organizational Planning and the Selection from among Alternative Candidate Portfolios
    10. Notes
    11. References
  12. Chapter 5: Management and Implementation of EROM at the Institutional/Technical Level (Technical Centers or Directorates)
    1. 5.1 EROM from a Technical Center's Perspective
    2. 5.2 Extended Enterprises and the Technical Center's Extended Organization
    3. 5.3 EROM-Informed Budgeting of Resources across a Technical Center's Extended Organization
    4. References
  13. Chapter 6: Special Considerations for EROM Practice and Analysis at Commercial TRIO Enterprises
    1. 6.1 Overview
    2. 6.2 Risk and Opportunity Scenarios and Leading Indicators
    3. 6.3 Controllable Drivers, Mitigations, Actions, and Internal Controls
  14. Chapter 7: Examples of the Use of EROM Results for Informing Risk Acceptance Decisions
    1. 7.1 Overview
    2. 7.2 Example 1: DoD Ground-Based Midcourse Missile Defense in the 2002 Time Frame
    3. 7.3 Example 2: NASA Commercial Crew Transportation System as of 2015
    4. 7.4 Implication for TRIO Enterprises and Government Authorities
    5. References
  15. Chapter 8: Independent Appraisal of EROM Processes and Results to Assure the Adequacy of Internal Controls and Inform Risk Acceptance Decisions
    1. 8.1 Background
    2. 8.2 Queries for an Independent Appraisal of EROM in the Contexts of Internal Control and Risk Acceptance
    3. References
  16. Chapter 9: Brief Overview of the Potential Integration of EROM with Other Strategic Assessment Activities
    1. 9.1 Technical Capability Assessment (TCA)
    2. 9.2 Strategic Annual Review (SAR)
    3. 9.3 Portfolio Performance Review (PPR)
    4. References
  17. Chapter 10: An Integrated Framework for Hierarchical Internal Controls
    1. 10.1 Internal Control Principles and the Integration of Internal Control, Risk Management, and Governance
    2. 10.2 Methodological Basis
    3. 10.3 Examples
    4. 10.4 Incorporation of Internal Control Principles into the Control Loop Approach
    5. 10.5 Summary of Observations
    6. Note
    7. References
  18. Appendix A: Acronyms
  19. Appendix B: Definitions
  20. About the Companion Website
  21. About the Author
  22. Index
  23. End User License Agreement