毕业论文英文文献及翻译.docx

1、毕业论文英文文献及翻译Managing Risk:An Enterprise-wide ApproachBartonThomasL1、ShenkirWilliamG2、WalkerPaulL3Twenty-first century businesses worldwide operate in an environment where forces such as globalization,technology,the internet,deregulation,restructurings and changing consummer expectationsare creating m

2、uch uncertainty and prodigious risks. Consider, for example, that no force is having as great an impact on business today as the Internet. And as the internet evolves, companies in all industries are rethinking the basics: business models, core strategies and target customer bases.These new developm

3、ents create new issues related to risk and risk management. Managing risk on an integrated and enterprise-wide basis is a vital issue confronting executives, with the CFO a key decisionmaker in crafting the company strategy, I think the point to risk management is not to try and operate your busines

4、s in a risk-free environment, its to tip the scale to your advantage. So it becomes strategic rather than just defensive, observed Peter Cox, chief financial officer of United Grain Growers Ltd. (of Canada). To some extent, no matter what its products or services, every organization is in the busine

5、ss of risk management.Most executives would likely agree that risk management is part of their job, and there is probably agreement that risks are increasing rather than decreasing. But ask executives to elaborate on risk management and youll no doubt get a variety of answers: Its about preventing d

6、isasters, or, Its something the insurance or finance people handle.Is it just business management?What does risk management mean to management in todays companies? Financial Executives Research Foundation recently published a book summarizing research on the subject gleaned from five companies in di

7、verse industries. The book Making Enterprise Risk ManagementPay Off, reports on how the five are implementing enterprise-wide risk management. The companies studied were: Chase Manhattan Corp (now j . P. Morgan Chase & Co.), E.Ldu Pont de Nemours and Co.Microsoft Corp., United Grain Growers, Ltd. an

8、d Unocal Corp.One key finding is that risk management is not just about finance insurance or disasters. Its about running the business effectively and understanding, at the core, the fun damental risks facing the business .Tim Ling, president and chief operating officer of Unocal (and the companys f

9、ormer CFO), emphasized, think you will see almost all companies over the next few years moving in the same direction as we are,really trying to integrate the notion of risk management with the notion of just business management. To me,running a business is all about managing risk. Successful compani

10、es, almost by definition, have managed risks well,but practicing “risk management” has typically been informal and implicit. Some companies may have survived without ever knowing their real portfolios of risks. Taking an implicit approach to risk management can be risky itself, as its caused some ma

11、jor surprises to companies unaware of the explicit risks.Examples include major debacles such as product recalls or fraudulent securities trading, major shifts in markets that management missed or saw too late, and increasingly complex environmental or business changes not recognized by management.

12、Successful risk management today is not just alxsut debacles and the downside its as much about opportunities and the upside. As UGGs Peter Cox .said, its a strategic initiative, not a defensive one.A paradigm shiftBy way of definition, enterprisewide risk management, or integrated risk management,

13、is a paradigm shift for many companies. Its goal is to create, protect and enhance shareholder value by managing the uncertainties that could either negatively or positively influence achievementof the organizations objectives. Historically, managing risk was done in silos rather than enter-prise-wi

14、de, That is, companies knew how to manage certain obvious risks individually but never thought about examining every risk and involving management in managing all of those risks. Typically, companies would have people who managed process risk, safety risk, insurance, financial and assorted other ris

15、ks. A result of this fragmented approach was that companies would often take huge risks in some areas of the business while over-managing substantially smaller risks in other areas.Enterprise-wide risk management is a coordinated and focused approach for managing all risks together.Whats driving com

16、panies to adopt enterprise-wide approaches to risk management? The study found three major reasons. For starters, risk management has gained recognition as companies have seen major debacles occur internally or at other companies. The size of these disasters can be devastating, and executives freque

17、ntly lose their jobs as a result.Simply stated, one of the main reasons risk management has become necessary is to manage strategically and avoid catastrophes.Secondly, many executives believe risks are greater than ever before. In fact, even being a chief executive is risky. The Economist(Nov. 11,

18、2000) reported that this past October alone, 129 chief executives left their companies and that the Business Council no longer puts an incoming executive on its member list immediately, but instead waits to see if the newcomer will last. Executives know the risks are there, but they are not sure wha

19、t to do to manage them. Indeed, many executives would welcome a risk management plan and related risk inirastructure.The third reason concerns shareholder value. Companies have learned (as Unocals Tim Lingexpressed) that managing risk is really about managing the business and therefore managing risk

20、 can create shareholder value if done correctly. Susan Stalnecker. DuPont strea.surer. comments on the old view of risk management versus the new,more integrated approach; What we have is a control process now. We dont have a value creation process.That s what we re trying to do. The risk management

21、 processStudy results from ihe five companies clearly indicate there is no cookie-cutter or one-size-fits-all approach to risk management. Each company developed different yet overlapping approaches. Yet, in spite of the differences, each companys management believed that their approach was adding v

22、alue to their organization. The discussion that follows highlights some of the lessons learned about adding value through enterprise-wide risk management.1. Identify risks. Effective risk management initially means knowing your risks. Each of the case study companies had, in one way or another, made

23、 a concerted effort to identify its risks. Risks were identified in a variety of ways: using scenario analysis, brainstorming, performing risk self-assessments and generally by looking across the organization (or enterprise-wide) to make sure they had covered the major business risks. Karl Primm,Uno

24、cals general auditor, said of the new approach. “Risk management is not new; managers have been doing this since the beginning of time. An integrated approach, however, does shed new light and benefits on the process. Risk identification is not static. As the business, economy and industry change, s

25、o do the risks and so,too. must the risk identification process.2. Rank risks. Once risks are identified, management can determine what to do with them, depending on the effect of the risk on the business.A good first step in assessing the effect is to rank risks by some scale of impact and likeliho

26、od. DuPont implicitly lanks risks, while Microsoftuses risk rankings to generate risk maps. (Risk maps are a graphical approach for viewing and plotting both likelihood and impact of risks.)Either way,can you imagine trying to run a business without knowing the real risks and without knowing the pos

27、sible importance of each risk? Its a recipe for poor performance or even disaster. The goal is to make conscious decisions about risk,including all risks facing the business.3. Try to measure risks. As previously noted, some companies implicitly or explicitly rank risks; others decide to validate th

28、e risks perceived importance. These companies want to have more evidence on importance before they make decisions about how to manage the risk.Gathering this additional evidence helps management allocate capital efficiently and avoid over-managingthose risks that are not as important while under-man

29、aging those that are important.Risk Measurement ApproachesBut some risks seem to defy reliable measurement. The approach we have taken in financial risk and business risk is to try to quantify what we can and not necessarily worry that we are unable to capture everything in our measurement, said Geo

30、rge Zinn. director of corporate finance for Microsoft, describing how his company views the problem. Still, companies should attempt serious risk measurement because it offers hard data to back up the perceived impact of risks.The most sophisticated measurement of risk occurs in the area of financia

31、l risk. Companies are using value at risk or VAR (effect of unlikely events in normal markets), and stress testing (effect of plausible events in abnormal markets)methodologies to measure the potential impact of the financial risks they face. To Microsoft. VAR provides a way to respond to the questi

32、on. How much risk is Microsoft taking? Microsofts treasurer, Brent Callinicos, said that before the company used VAR. it would have to ask what they really meant. The risk management group, according to Callinicos, decided it would tell anyone who asks what we mean when we say we have risk.The measurement of risk has been evolving from financial risk to now include non-financial risk which is more problematic. However, the companies studied have developed eclectic approaches to measuring these various risks. For example:UGG took risk measurement to a new level by developi