Example #5. Chapter 11: How to Prepare a Risk Profile

TL: The Risk Map is a graphic representation of a Risk Profile and in this case contains eight risks (page 173). The first risk is ...

There are eight steps to create a Risk Profile (pages 177-186).

Step 1: Schedule interviews and gather background information.

Step 2: Prepare the interview tools.

Step 3: Summarize the interview findings.

Step 4: Summarize the risk ratings and trends.

Step 5: Draft the Top 10 Risk Profile.

Step 6: Review the Draft Risk Profile.

Step 7: Communicate the Risk Profile with the board or a board committee.

Step 8: Track the results.

LCT: Appraise the benefit of a Risk Profile and Risk Map.

Suggest which step is the most challenging in preparing a Risk Profile. Comment on why your group selected this step.

Create a Top 10 Risk Profile for the company you work for, your university, or your school.

Example #6. Chapter 13: Quantitative Risk Assessment in ERM

TL: This chapter discusses risk assessment and risk quantification ... (page 219).

LCT: Explore information related to the Schneider Truck Yard Tornado Damage in Dallas, Texas, on April 3, 2012. This results in a large number of videos and news stories.

Assess where this event would be placed in a Risk Map. Comment on how the event may be viewed in a statistical analysis. Now speculate on your reaction if you have just received a phone call stating, "All of the trailers and tractors in your Dallas Hub have been destroyed."

See Exhibit 13.3 of Fraser and Simkins (2010, p. 224).

LN: The video of tractor trailers flying through the air is striking. This is a

learning opportunity to consider the ERM of "tail events" and "known unknowns."

Example #7. Chapter 14: Market Risk Management/Credit Risk Management

TL: Looking at the Taxonomy of Market Risk and Credit Risk (page 240): The first market risk is ... The next one is ...The third one is ... The first credit risk is ...The next one is ... The third one is ...

LCT: Distinguish between market risk and credit risk.

Reviewing the different types of risk, assess which risk is most striking and noteworthy. Comment on why your group chose this risk.

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