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Part III of this book demonstrates the link between ERM and strategy in what is now being called strategic risk management (SRM). SRM represents an important evolution in enterprise risk management, shifting from a reactive approach to a proactive approach in dealing with the large spectrum of risks across the organization. These case studies view their risk-taking activities in a strategic way, not only to protect the organization's value and assets, but also to be able to capture new value that is in alignment with the strategic goals of the organization.

Zurich Insurance Group, the case study in Chapter 14, demonstrates the link between ERM and strategy. Zurich is a global insurance carrier and is exposed to a wide range of risks. Zurich recognizes that taking the right risks is a necessary part of growing and protecting shareholder value. It is careful not to miss valuable market opportunities that could attract the best talent and investor capital, but must also balance the growth opportunities with the reality that it is operating in a complex world economy. This chapter is co-authored by Linda Conrad, Director of Strategic Business Risk Management at Zurich and Kristina Narvaez, president and owner of ERM Strategies, LLC and co-editor of this book. Linda leads a global team responsible for delivering tactical solutions to Zurich and to its customers on strategic issues such as business resilience, supply chain risk, ERM, risk culture, and total risk profiling.

Chapter 15, "Embedding ERM into Strategic Planning at the City of Edmonton," is written by Ken Baker, who is their ERM Program Manager. This study examines the process used by the City of Edmonton in Alberta, Canada, to establish its strategic ERM model. After examining several existing frameworks, the City decided on a framework based on the ISO 31000 risk management standard, but customized to suit the City's needs. During the process, administration had to weigh factors common to any large organization, as well as those specific to governments in general and municipalities in particular. The chronicling of this process may assist those in similar organizations to more successfully implement their own ERM and SRM programs.

Chapter 16 describes a brief history of the evolution of enterprise risk management and describes a new and innovative approach (value mapping) to measuring the potential value by taking risks. This chapter also provides a model for incorporating the ERM process into strategic planning. John Bugalla, Principal of ermlNSIGHTS and author of Chapter 7, and James Kallman, a finance professor at St. Edward's University, co-author this chapter. John's experience includes 30 years in the risk management profession serving as Managing Director of Marsh & McLennan, Inc., Willis Group, Pic., and Aon Corp., before founding ermlNSIGHTS. James teaches courses in finance, statistics, and risk management.

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