JWBK134-FMJWBK134-MernaMarch3,200821:29CharCount=0CorporateRiskManagement2ndEditionTonyMernaandFaisalAl-ThaniiiiJWBK134-FMJWBK134-MernaFebruary27,200821:3CharCount=0iiJWBK134-FMJWBK134-MernaMarch3,200821:29CharCount=0CorporateRiskManagement2ndEditioniJWBK134-FMJWBK134-MernaMarch3,200821:29CharCount=0iiJWBK134-FMJWBK134-MernaMarch3,200821:29CharCount=0CorporateRiskManagement2ndEditionTonyMernaandFaisalAl-ThaniiiiJWBK134-FMJWBK134-MernaMarch3,200821:29CharCount=0CopyrightC⃝2008JohnWiley&SonsLtd,TheAtrium,SouthernGate,Chichester,WestSussexPO198SQ,EnglandTelephone(+44)1243779777Email(forordersandcustomerserviceenquiries):cs-books@wiley.co.ukVisitourHomePageonwww.wiley.comAllRightsReserved.Nopartofthispublicationmaybereproduced,storedinaretrievalsystemortransmittedinanyformorbyanymeans,electronic,mechanical,photocopying,recording,scanningorotherwise,exceptunderthetermsoftheCopyright,DesignsandPatentsAct1988orunderthetermsofalicenceissuedbytheCopyrightLicensingAgencyLtd,90TottenhamCourtRoad,LondonW1T4LP,UK,withoutthepermissioninwritingofthePublisher.RequeststothePublishershouldbeaddressedtothePermissionsDepartment,JohnWiley&SonsLtd,TheAtrium,SouthernGate,Chichester,WestSussexPO198SQ,England,oremailedtopermreq@wiley.co.uk,orfaxedto(+44)1243770620.Designationsusedbycompaniestodistinguishtheirproductsareoftenclaimedastrademarks.Allbrandnamesandproductnamesusedinthisbookaretradenames,servicemarks,trademarksorregisteredtrademarksoftheirrespectiveowners.ThePublisherisnotassociatedwithanyproductorvendormentionedinthisbook.Thispublicationisdesignedtoprovideaccurateandauthoritativeinformationinregardtothesubjectmattercovered.ItissoldontheunderstandingthatthePublisherisnotengagedinrenderingprofessionalservices.Ifprofessionaladviceorotherexpertassistanceisrequired,theservicesofacompetentprofessionalshouldbesought.OtherWileyEditorialOfficesJohnWiley&SonsInc.,111RiverStreet,Hoboken,NJ07030,USAJossey-Bass,989MarketStreet,SanFrancisco,CA94103-1741,USAWiley-VCHVerlagGmbH,Boschstr.12,D-69469Weinheim,GermanyJohnWiley&SonsAustraliaLtd,42McDougallStreet,Milton,Queensland4064,AustraliaJohnWiley&Sons(Asia)PteLtd,2ClementiLoop#02-01,JinXingDistripark,Singapore129809JohnWiley&SonsCanadaLtd,6045FreemontBlvd,Mississauga,ONT,L5R4J3,CanadaWileyalsopublishesitsbooksinavarietyofelectronicformats.Somecontentthatappearsinprintmaynotbeavailableinelectronicbooks.AcataloguerecordforthisbookisavailablefromtheBritishLibraryLibraryofCongressCataloging-in-PublicationDataMerna,Tony.Corporateriskmanagement/TonyMernaandFaisalAl-Thani.–2nded.p.cm.Includesbibliographicalreferencesandindex.ISBN978-0-470-51833-5(cloth:alk.paper)1.Riskmanagement.2.Corporations—Finance—Management.3.Industrialmanagement.I.Al-Thani,FaisalF.II.Title.HD61.M4632008658.15’5—dc222008004969Typesetin11/13ptTimesbyAptaraInc.,NewDelhi,IndiaPrintedandboundinGreatBritainbyTJInternationalLtd,Padstow,Cornwall,UKThisbookisprintedonacid-freepaperresponsiblymanufacturedfromsustainableforestryinwhichatleasttwotreesareplantedforeachoneusedforpaperproduction.ivJWBK134-FMJWBK134-MernaMarch3,200821:29CharCount=0TonyMerna–tomylovingmother;aninspirationFaisalAl-Thani–tomyfamilyvJWBK134-FMJWBK134-MernaMarch3,200821:29CharCount=0viJWBK134-FMJWBK134-MernaFebruary27,200821:3CharCount=0Contents1Introduction11.1Introduction11.2WhyManagingRiskisImportant11.3Gener...
