The Practice of Non-Financial Risk Management in the Financial Sector – Thomas Kaiser – Book Review

With The Practice of Non-Financial Risk Management in the Financial Sector, Thomas Kaiser once again presents a must-read book for risk managers or those who want to become one. The author reviews an impressive career in… Risk Management of financial institutions and brings together his knowledge from banking practice, consulting and academia in a unique way in the book.

It represents the successful ‘why tour’ of 25 years of operational risk management to the current expansion phase of non-financial risk (NFR) management. The structure of the work is arranged chronologically and uses historical events and decision-making processes of the time to uniquely illustrate the genesis of an initially underestimated risk management system. The reading tour leads into the present and ranges from a well-grounded presentation of the interaction between risk strategy and culture and leads through the core elements of the risk framework through to individual topics important to NFR management such as ‘behavioural risk management’, reputation, legal risk and/or ICT. Here, Thomas Kaiser, professor at the Goethe-Universität Frankfurt/Main, also puts a hitherto unexplored area of ​​literature (and one of its most sincere themes) in the spotlight: the meaning of ITG– Risks to the NFR.

He has done an excellent job of concisely incorporating his previously published research findings into this study. He creates a kaleidoscope of non-financial risk management that captivates the reader with diverse language.

Building on his foundations of past and present, the author derives important future drivers that extend back to the scope of NFR management, such as further integration of the risk engine ITGDigitization and change graceful Work environments. In doing so, it by no means neglects the after-effects of the pandemic and geopolitical crises that will continue to be felt in the future, as well as the implications for regulation.

In 121 pages, Thomas Kaiser succeeds in a highly sophisticated analysis of complex topics and connections, thus providing not only a comprehensive overview of current developments in… Risk Managementbut it also impresses with its clear and understandable language, which is also accessible to readers without special prior knowledge.
On the back of his motto “Risk Management is about Managing Risks”, he has truly created a standard work that should not be missing from any library on the subject of non-financial risk management.