Organized Opportunities addresses core aspects of integrating risk-based decision-making and optimization techniques in the design and management of industrialized financial services operations. Employing modified project risk and industrial risk management methods, the author derives valuable practical guidance for mega-project unbundling; business process and work flow optimization; risk-based organizational redesigns to enable complex financial products in risk factories and credit factories; and the identification of sensible performance benchmarks for the risk-adjusted management of teams and resources. Organized Opportunities provides food for thought and real life examples of how these additions to the method toolkit for financial services can be employed to turn enterprise-wide risk management into an opportunity enabler.
Table of Contents
Foreword. Part I. 1 Regulatory Approaches to Risk Management. 1.1 Regulatory Frameworks for Financial Services. 1.2 Evolution and Structure of the Second Basel Capital Accord. 1.3 Operational Risk under Basel II. 1.4 Operational Risk Compliance in Practice. 2 Evolution of and Current Trends in Risk Sciences. 2.1 Evolution of Risk Analysis and Risk Management Approaches. 2.2 Market Risk Management Approaches. 2.3 Credit Risk Management Approaches. 2.4 Operational Risk Management Approaches. 2.5 Managing Risk in Key Performance Indicators. 2.6 Operational Risk in Cost Analysis Techniques. 2.7 The Reflection of Risk in Management Accounting Systems. 2.8 The Relevance of "Soft" Factors in Risk Management. 2.9 Toward an Enterprise-Wide Risk Management Framework. 3 Aligning Risk Management with Future Challenges. 3.1 The Impact of Competitive Pressures in Financial Services. 3.2 Performance Inhibitors within Financial Services Organizations. 3.3 Relevant Trends in Information Technology. 3.4 Changing Focus of Business Processes Management and Organization. 3.5 Changing Relevance of Cultural and Human Factors. 3.6 The Industrialization of Financial Services. 3.7 Implications of Organizational Design, and Organization Learning. 3.8 Linking Organizational Dynamics to Corporate Strategy. 3.9 Leadership in the Implementation of Organizational Change. Part II. 4 Risk-based Realignment of Projects and Investments. 4.1 Standards in Project Management. 4.2 Troubled Projects. 4.3 Projects versus Programs versus Project Portfolios. 4.4 The Evolution of Mega-Projects. 4.5 Lessons Learned in Mega-Projects and Troubled Projects. 4.6 Toward a New Paradigm for IT Mega-Project Unbundling. 4.7 Mapping the New Paradigm to IT Mega-Project Unbundling. 5 Risk-Based Realignment of Financial Services Processes. 5.1 The Promise of Activity-Based Costing. 5.2 Validity of Subjective Assessments in Processes. 5.3 Exploratory Approach to Process Capturing. 5.4 Exploratory Approach to Subjective Efforts Estimating. 5.5 Exploratory Approach to Process Model and Cost Analysis. 5.6 Exploratory Approach to Organization Redesign. Part III. 6 Rethinking the Industrialization of Credit Factories. 6.1 Background Research on Credit Processes and Credit Factories. 6.2 Exploratory Concepts of Credit Factory Development. 6.3 Credit Factory Model Quantification Efforts. 6.4 Credit Factory Model Outputs. 6.5 Implications of More Proactive Risk Management. 6.6 Implications of Models for Organizational Design. 7 Development and Pricing Structure of a Risk Factory. 7.1 Risk Management as a Sourcing Concept. 7.2 Risk-Based Risk Management Processes. 7.3 Risk Factory Model Outputs. 7.4 The Pricing of Risk Management Services. 7.5 Organizational Implications for Risk Management. Part IV. 8 Final Conclusions and Recommendations. Index.
Dr. Wilhelm K. Kross, Dipl.-Ing., MBA, is a recognized expert in the field of project- and risk management. As a Director of Value & Risk AG, Dr. Kross has worked for banks, IT services providers and energy traders since early 2000. In the 1990s he applied his expertise to industrial projects in North and South America and Africa. Dr. Kross is a certified European Engineer, a lecturer at the European Business School, VP Finance of the Project Management Institute Frankfurt Chapter, and leads the PMIFC 'Troubled Projects' committee as the local contact for the PMI TPSIG and RiskSIG.