A fully updated, step-by-step guide for implementing COSO's Enterprise Risk Management

"COSO Enterprise Risk Management, Second Edition" clearly enables organizations of all types and sizes to understand and better manage their risk environments and make better decisions through use of the COSO ERM framework. The "Second Edition" discusses the latest trends and pronouncements that have affected COSO ERM and explores new topics, including the PCAOB's release of AS5; ISACA's recently revised CobiT; and the recently released IIA Standards.Offers you expert advice on how to carry out internal control responsibilities more efficientlyUpdates you on the ins and outs of the COSO Report and its emergence as the new platform for understanding all aspects of risk in today's organizationShows you how an effective risk management program, following COSO ERM, can help your organization to better comply with the Sarbanes-Oxley ActKnowledgeably explains how to implement an effective ERM program

Preparing professionals develop and follow an effective risk culture, "COSO Enterprise Risk Management, Second Edition" is the fully revised, invaluable working resource that will show you how to identify risks, avoid pitfalls within your corporation, and keep it moving ahead of the competition.

In the next wave of conduct regulation in financial markets, from 2021 conduct regulators in the UK and elsewhere expect firms to produce evidence on how they are improving behaviour and culture. Facing this, many practitioners are anxious that their current reporting and management information (MI) are irrelevant to meeting as-yet unclear regulatory expectations. This book provides the insights and tools firms need to report on culture, securing both enhanced business value and the regulator's approval. Culture is now seen as a key contributor to good governance, feeding into existing discourse on environmental, social and governance (ESG) factors and the emerging dialogue on 'non-financial (mis)conduct', but conventional measures of business quality are unfit for the new reporting agenda. Culture Audit in Financial Services follows the arc of 'behavioural regulation' to examine what the regulator really wants, before offering guidance on how culture audit differs from conventional auditing, how to put the latest pure-research findings to work, and the key features of well-designed conduct and culture reports. Written by an impartial author and a variety of contributors with extensive experience working with practitioners, regulators, and many of the world's finest academic initiatives, this book is filled with practical, grounded advice on how best to approach this new challenge and avoid infractions.

Brian Hedden defends a radical view about the relationship between rationality, personal identity, and time. On the standard view, personal identity over time plays a central role in thinking about rationality. This is because, on the standard view, there are rational norms for how a person's attitudes and actions at one time should fit with her attitudes and actions at other times, norms that apply within a person but not across persons. But these norms are problematic. They make what you rationally ought to believe or do depend on facts about your past that aren't part of your current perspective on the world, and they make rationality depend on controversial, murky metaphysical facts about what binds different instantaneous snapshots (or 'time-slices') into a single person extended in time. Hedden takes a different approach, treating the relationship between different time-slices of the same person as no different from the relationship between different people. For purposes of rational evaluation, a temporally extended person is akin to a group of people. The locus of rationality is the time-slice rather than the temporally extended agent. Taking an impersonal, time-slice-centric approach to rationality yields a unified approach to the rationality of beliefs, preferences, and actions where what rationality demands of you is solely determined by your evidence, with no special weight given to your past beliefs or actions.

Framing effects are everywhere. An estate tax looks very different to a death tax. Gun safety seems to be one thing and gun control another. Yet, the consensus from decision theorists, finance professionals, psychologists, and economists is that frame-dependence is completely irrational. This book challenges that view. Some of the toughest decisions we face are just clashes between different frames. It is perfectly rational to value the same thing differently in two different frames, even when the decision-maker knows that these are really two sides of the same coin. Frame It Again sheds new light on the structure of moral predicaments, the nature of self-control, and the rationality of co-operation. Framing is a powerful tool for redirecting public discussions about some of the most polarizing contemporary issues, such as gun control, abortion, and climate change. Learn effective problem-solving and decision-making to get the better of difficult dilemmas.

This book, based on the author's Clarendon Lectures in Finance, examines the empirical behavior of corporate default risk. A new and unified statistical methodology for default prediction, based on stochastic intensity modeling, is explained and implemented with data on U.S. public corporations since 1980. Special attention is given to the measurement of correlation of default risk across firms. The underlying work was developed in a series of collaborations over roughly the past decade with Sanjiv Das, Andreas Eckner, Guillaume Horel, Nikunj Kapadia, Leandro Saita, and Ke Wang. Where possible, the content based on methodology has been separated from the substantive empirical findings, in order to provide access to the latter for those less focused on the mathematical foundations.
A key finding is that corporate defaults are more clustered in time than would be suggested by their exposure to observable common or correlated risk factors. The methodology allows for hidden sources of default correlation, which are particularly important to include when estimating the likelihood that a portfolio of corporate loans will suffer large default losses. The data also reveal that a substantial amount of power for predicting the default of a corporation can be obtained from the firm's "distance to default," a volatility-adjusted measure of leverage that is the basis of the theoretical models of corporate debt pricing of Black, Scholes, and Merton. The findings are particularly relevant in the aftermath of the financial crisis, which revealed a lack of attention to the proper modelling of correlation of default risk across firms.

In Being Rational and Being Right, Juan Comesana argues for a cluster of theses related to the rationality of action and belief. His starting point is that rational action requires rational belief but tolerates false belief. From there, Comesana provides a novel account of empirical evidence according to which said evidence consists of the content of undefeated experiences. This view, which Comesana calls Experientialism, differs from the two main views of empirical evidence on offer nowadays: Factualism, according to which our evidence is what we know, and Psychologism, according to which our experiences themselves are evidence. He reasons that Experientialism fares better than these rival views in explaining different features of rational belief and action. Comesana embeds this discussion in a Bayesian framework, and discusses in addition the problem of normative requirements, the easy knowledge problem, and how Experientialism compares to forms of evidentialism and reliabilism.

The concept of rationality is a common thread through the human and social sciences -- from political science to philosophy, from economics to sociology, and from management science to decision analysis. But what counts as rational action and rational behavior?
Jose Luis Bermudez explores decision theory as a theory of rationality. Decision theory is the mathematical theory of choice and for many social scientists it makes the concept of rationality mathematically tractable and scientifically legitimate.
Yet rationality is a concept with several dimensions and the theory of rationality has different roles to play. It plays an action-guiding role (prescribing what counts as a rational solution of a given decision problem). It plays a normative role (giving us the tools to pass judgment not just on how a decision problem was solved, but also on how it was set up in the first place). And it plays a predictive/explanatory role (telling us how rational agents will behave, or why they did what they did).
This controversial but accessible book shows that decision theory cannot play all of these roles simultaneously. And yet, it argues, no theory of rationality can play one role without playing the other two. The conclusion is that there is no hope of taking decision theory as a theory of rationality.