Authors: P. Claes; S. Janicijevic; R. Lengkeek
In this textbook on risk management, the authors start from scratch. They extensively take the time for an introductory first chapter that is necessary to explain to students where risk management positions itself for the individual, humanity, and organizations and why it is required to engage in risk management.
Only in the second chapter is an analytical definition of what risks are given, and the difference between the various types of risks, static and dynamic, as well as different risk categories, is explained. Here, the goals of the organization are paramount. The magnitude of risks is essential to make organizations aware of why risk management is critical.
Risk management is defined only thereafter. The book emphasizes that risk management is a process that never stops. You cannot simply devise a policy, put it in the closet, and say you are set on risk management. The fact that it is a process means that someone must be designated as responsible in the right place in the hierarchy.
In this way, the book logically progresses and delves deeper into the risk management process. And to start a process, planning is needed. It also looks at the practical differences between static and dynamic risks in the approach.
The book continues with risk identification and evaluation as important steps in risk management. Once the organization becomes aware of these risks and determines which risks need to be addressed, the risk treatment policy is established. The organization’s risk profile is an important component here.
The subsequent chapters address addressing risks through a damage prevention policy that aims to avoid, reduce, prevent damage, or transfer risks. Considerable attention is paid to insurance and self-insuring risk, including discussion on the insurance form of the captive structure as a solution. In these last chapters, the authors also refer to more specialized literature.
This work is particularly successful as a textbook, thanks in part to its logical structure. The student progressively delves further into the world of risk management.