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Main stages of development of a risk management

The table in which the main stages of development risk of management are noted is given below:

Period Scientific work
1914 Robert Morris's Association is created. In 2000 the name was changed on "Risk of Management Association", and the organization continued studying of credit risks at financial institutions.
1915 F. Leytner published the thesis about risk and methods of management, including insurance, under the name "Risks of the Enterprise" in Berlin
1921 Frank Knight published the book "Risk, Uncertainty and Profit". In it Knight separates uncertainty which does not give in to measurement, from risk. The thesis on problems of probability of John Maynard Keynes "The treatise about probability" is published.
1928 John von Neumann submitted its first article about games theory and strategy "To the theory of strategic games". Later in 1944 Neumann and Oscar Morgenstern stated mathematical aspects of the theory in the book "Game Theory and Economic Behaviour".
1952 Harry Markovic published article "Portfolio choice". Its model is applied by specialists on management of an investment portfolio.
1955 - 1956 Harvard Business Review published Russell Gallagher's article "the Risk management: New phase of cost control". Wayne Snider in 1955 offered that "the professional insurance manager has to be risk a manager". Herbert Denenberg began to study the idea of a risk management, using early works of Henry Fayol.
1962 Douglas Barrow develops the idea of cost of risk, in comparison with the amount of the self-financed losses, insurance premiums, expenses on risk control, administrative expenses to total revenue, assets, equity.
1966 The insurance institute of America develops three examinations, for qualification award "The certified risk management specialist".
1972 Joseph Kenneth Errou get the Nobel prize on economy. Errou introduced the ideal world in which it is possible to insure any risk, and the law of large numbers works. Errou considered: "Our knowledge of the course of affairs in society and in the nature sinks in uncertainty fog".
1973 Heads of insurance companies met in Paris for creation of International Association on studying of economy of insurance (The Geneva association). In 2 years the Geneva association holds the first constituent assembly, and coordination of risk management, insurance and economy begins. The same year, Fischer Blek and Miron Sholts published article in the Politicheskaya Ekonomiya magazine in which presented a formula for cost determination of the option.
1974 Gustav Hamilton, the risk manager, described a risk management cycle graphically, having introduced interrelation and interaction of all elements of process, from assessment and control before financing and feedback.
1975 To the USA, the American society concerning management in an insurance field (the American Society of Insurance Management), changes the the name on Society concerning risk management and insurance (Risk and Insurance Management Society), recognizing transition to risk management. The Fortune magazine publishes article under the name "Risk Management Revolution" in which coordination of earlier untied risk management functions in the organization and adoption by the management of responsibility for preparation of policy and for control is offered. In twelve years these ideas gained recognition.
1979 Daniel Kahneman and Amos Tverski published article "The theory of prospects: the analysis of decision making in the conditions of risk". Three years later D. Kahneman, A. Tverski and P. Slovik wrote the book "Decision making in the conditions of uncertainty: rules and prejudices".
1980 State policy, environment protection lead to forming of International society of risk analysis. The quarterly magazine "Analiz Riska" appears same year. The international society of risk analysis totals more than 2500 participants and active groups worldwide.
1983 Rukelshaus talked with the speech about the topic "Science, Risk and State Policy" that served as the beginning of origin of the idea of risk management in state policy. Risk management reaches the national level.
1986 On October 19, 1987 call "Black Monday", this day there was a collapse of stock exchange, reminding investors that the risk is an integral part of their activity. The same year doctor Vernon Grouz, the physicist, publishes "Risk management: Systematic prevention of losses for heads" (Managing Risk, Systematic Loss Prevention for Executives), the book which remains to one of the first in grades and risk management.
1987 Cadbury's committee (Committee on financial aspects of corporate management) prepared the report which main idea is that governing bodies are responsible for establishment of a risk management policy, noting that they understand all the risks and have to establish supervision during all process. The term "Director of Risk Management" was entered by James Lam, describing risk management function, including a risk management, business planning, financial planning and functions of a back office.
1992 Cadbury's committee (Committee on financial aspects of corporate management) prepared the report which main idea is that governing bodies are responsible for establishment of a risk management policy, noting that they understand all the risks and have to establish supervision during all process. The term "Director of Risk Management" was entered by James Lam, describing risk management function, including a risk management, business planning, financial planning and functions of a back office.
1994 Charles Sanford, the chief executive of Bankers Trust Corporation, published article "Risk Management Revolution". He specifies that the discipline "risk management" is key for management of financial institutions.
1995 The Australian-New Zealand standard on risk management of AS/NZS 4360:1995 was published (it is reconsidered 1999 and 2004).
1996 The World association of professionals in the field of risk management is created (Global Association of Risk Professionals, GARP). The book by Peter L. Bernstein "Against gods is the same year published. Taming of risk". Peter Bernstein revealed one of the most important postulates of the present: it is possible to avoid a number of negative consequences of this or that event in spite of the fact that risk — the invariable satellite of our life, using different statistical techniques, historical and sociological experience and the mathematical analysis. Both hedging, and diversification, etc., can be similar insurance mechanisms that is comprehensively described in the peculiar author to an entertaining and publicistic manner on the example of studying of experience of activity of the institutional investor and the analysis of exchange practice. The author in full opened a risk role in business activities of the person, comprehensively characterized all probability theory which is available in an arsenal future forecasting methods for the purpose of acceptance of an effective solution which choice minimizes a possibility of the pessimistic scenario. In March, 1996 the The Harvard Business Review magazine published Bernstein's article "The New Religion of Risk Management".
2000 The International professional association of risk managers is created PRMIA (Professional Risk Managers' International Association).
2004 Basel Committee on Banking Supervision at Bank for International Settlements (English Committee on Banking Supervision of the Bank for international Settlements) publishes Basel II. Approach Basel is based by II on three components: minimum requirements to the capital (basis Basel I), procedures of supervision and market discipline. Thereby Basel existing from the moment of acceptance the I mechanism of calculation of the minimum level capital adequacy which already proved the efficiency, was complemented with the system of supervision and interaction between banks and supervisory authorities and also wide system of disclosure of information.
2005 The international organization on standardization (ISO) creates the working group for development of the management for determination, application and practice of a risk management.
2007 he book Nassim by Nicolas Taleb "Black Lebed" is published. The main thing what it is told in the book about - it is our blindness in relation to accident, especially large-scale. He considers that he "in our world prevails extraordinary, unknown and very improbable while we focus attention on the known and repeating facts". Earlier in 2001 his book "Fooled by accident was published: the hidden role of chance in life and economy".

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