Review
If there s anything that s long overdue for a little reimagination, it s governance. Not only does this book contain new ideas, it is a delightful read, full of analogies, metaphors, and linkages to common everyday situations. I know I will refer to this book again and again. Don M. Chance, Ph.D., CFA, James C. Flores Endowed Chair of MBA Studies & Professor of Finance, Louisiana State University David Koenig has always been on the vanguard of innovative ways to think and practice risk management. I have known David for over a decade and saw him make the link between environmental sustainability and corporate governance way ahead of his peers. Readers will greatly benefit from his out-of-the box and multi-disciplinary approach to how reimagined governance can help create value in these turbulent but exciting times. Richard Sandor, Chairman and CEO, Environmental Financial Products LLC and author, Good Derivatives: A Story of Financial and Environmental Innovation Governance Reimagined presents material about which I have thought long and reawakens memories of intellectual voyages in the past like Complexity Theory at the Santa Fe Institute. This is a well organized, presented and written book. The writing is exceptionally jargon free and user friendly. It should be a great success. Robert A. G. Monks, Lens Governance Advisors and author of Corporate Governance, Corporate Valuation for Portfolio Investment, The New Global Investors, Corpocracy, Capitalism Without Owners Will Fail, Power and Accountability, and The Emperor s Nightingale In the context of thinking that the organization is the most important innovation of mankind, writing a book titled Governance Reimagined is quite ambitious. But, David Koenig has delivered! I will recommend this book to friends and people I meet on my way. “Governance Reimagined is an insightful exploration into the design, practice and underpinnings of how organizations best use and manage risk in this post-financial crisis period. The book begins and maintains a focus throughout, just where it should: on the motivations and drivers of people, and groups of people, making risk/reward decisions big and small. It is a book that will benefit anyone involved with designing or managing an organization, no matter what the focus of that enterprise.” Michael A.M. Keehner, Columbia Business School Adjunct Professor, Board Member Oppenheimer Holdings A fast-paced, informative, witty and eminently readable guide. Governance Reimagined provides an excellent road map for creating organizations that use larger, freer collaborations to transform how we think about our work and about the value we give and get from each other a way to better fulfill your mission and unlock the full value of your organization. Anyone building or managing a for-profit, charitable, political or even social organization will benefit from David s perspective on governance. Jean Hinrichs, former Chief Risk Officer, Barclays Global Investors and Lecturer, Haas School of Business, UC Berkeley David Koenig provides a fresh call to action in this comprehensive and stimulating discussion of organizational design and risk governance. His enthusiasm and straightforward style makes the wide-ranging illustrations drawn from economics, complexity science, behavioural finance, systems and network theory both easily accessible and stimulating as a different way to think about governance. A thoughtful work for those involved in leading and managing organizations in today s world. Ruth M. Whaley, Member, Board of Directors, Nuclear Electric Insurance Limited, Principal, Barset Consulting LLC “David Koenig has masterfully broken down the complex components of governance and risk and challenges us to rethink our governance framework. This excellent book dares to break old governance models and re-govern with flexibility, and inclusivity, while bringing empowerment to all stakeholders.” Jennifer R. Sawyer, Principal, Rebound Enterprises and Sustainer President, Junior League of Minneapolis “There are two sides to this book that make it extremely valuable. First, the book presents enlightening examples that illustrate the nature of risk which are unmatched by technical texts. Second, it addresses the major issue of governance in its relation to risk – unlike many of the classic texts that debate governance without a focus on this critical relationship – most notably in financial firms. The variety of approaches taken by David makes the book immediately relevant – once you start reading, you cannot stop until reading the end. Professionals will immediately absorb the substance. Academics will find the variety of approaches and the examples unique. Students will gain a new perspective on governance and risk. This is a bright text that readers will highly appreciate.” Joel Bessis, Professor of Finance, HEC Paris and author, Risk Management in Banking David Koenig is equally at home explaining what subtle factors drive you to buy an apple, for example, as why complex organizations can break without warning. What s amazing, however, is how he weaves common sense with thorough academic knowledge to create a rich fabric that will enable readers to use governance for what it was intended: Creating value. Jon Lukomnik, Managing Partner, Sinclair Capital, Executive Director, IRRC Institute, past Deputy Comptroller, City of New York, and Co-author, The New Capitalists “This is an excellent book — David Koenig has presented some very important and complex ideas in a simple manner and is a must read for board members and managements. The ideas of networked and distributed governance, along with the management of risk capital as commons are very powerful. These ideas are important for corporations, governments and non-profits that must be accountable for profits, people and the planet and be more sustainable. The current crisis has exposed weaknesses in governance that need to be fixed, so this book comes at a very important time, not in a negative sense but in a positive, forward looking manner. ” Saurabh Narain, Chief Executive, National Community Investment Fund Governance Reimagined is brilliantly simple to understand. The relevance to today s corporate boards and C-suite executives who have gone through the worst period of economic turmoil in nearly a century jumps out at the reader in every chapter. The author s risk management background, combined with a philosopher/psychologist s eye for understanding how human s operating in clusters and individually make decisions sets this book apart from all other economic, finance and risk management books. Every board member and CEO who worried over unfathomable explanations of what can or did go wrong in an organization needs to read this book. Allan M. Grody, President, Financial InterGroup Holdings Ltd, founder and retired Partner-in-charge of Coopers & Lybrand s Financial Services Consulting Practice; adjunct professor New York University Stern Graduate Business School; Editorial Board Member, Journal of Risk Management in Financial Institutions David Koenig lives and breathes governance and in this book he presents valuable perspectives along with contemporary examples that illuminate his innovations. The book is full of great citations and current situations spice up every chapter. He connects the entire governance social network, including potentially conflicting groups, and demonstrates how establishing appropriate missions and values complemented by diversity, a collaborative open culture and transparent governance process will improve chances for healthy long term success and increased enterprise value. Governance Reimagined is a great read that does not disappoint. It should be required reading for senior corporate management and boards. Mark C. Abbott, PRM, Managing Director, Head of Quantitative Risk Management, Guardian Life & President, Buy Side Risk Managers Forum
From the Inside Flap
Under the right circumstances, self-organized groups of people can do amazing things. We can create products and services that never existed before as well as invent new and better ways of performing both simple and complex tasks. Whether in for-profit or nonprofit organizations, in political economies or informal associations, given the right setting, we can create things that are of substantial value to others, while also creating value for ourselves.
But in order to create things, we must be willing to take risks. Governance Reimagined offers one of the most detailed looks at a new way to govern effectively the interactions of organizations that take risks in the pursuit of value.
Written by David Koenigan internationally recognized expert on governance practices and risk managementthis book brings together a highly diverse set of ideas to put governance in a new perspective. Divided into four comprehensive parts, this reliable resource walks you through the surprising ways that value is created; the role that perceptions, behavior, and group dynamics play in the success of your organization; and the steps to take in designing the right governance framework to enable any organization to generate the most value from the initiative that caused it to form in the first place.
With this book as your guide, you’ll gain essential answers to some tough questions, including:
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What do we know about the governance of complex systems that can help us realize the potential of groups and avoid the complexity collapse that so many large organizations experience?
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Can governance structures be designed to address the varying needs and beliefs of those whose perceptions of us are critical to our organization’s success?
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How does viewing risk as a “commons,” in a networked and distributive environment of governance, allow organizations to deliver more utility and live longer?
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What is the role of trust in what we do, and what is its specific impact on how systems create value?
Once you establish an environment in which people can create things that are of value to others outside of your organization, while also creating value for those on the inside, you’ve succeeded.
Governance Reimagined skillfully outlines a practical, and innovative, approach that will help you achieve this elusive goal. Written for directors, corporate executives, elected officials, regulators, students, and those involved in the governance of risk-taking at all types of organizations, there is no other book quite like it.
From the Back Cover
Advance Praise for Governance Reimagined
“If there’s anything that’s long overdue for a little reimagination, it’s governance. Not only does this book contain new ideas, it is a delightful read, full of analogies, metaphors, and linkages to common everyday situations. I know I will refer to this book again and again.”Don M. Chance, PhD, CFA, James C. Flores Endowed Chair of MBA Studies and Professor of Finance, Louisiana State University
“David Koenig has always been at the vanguard of innovative ways to think and practice risk management. Readers will greatly benefit from his ‘out-of-the-box’ and multidisciplinary approach to how reimagined governance can help create value in these turbulent but exciting times.”Richard Sandor, Chairman and CEO, Environmental Financial Products, LLC, and author of Good Derivatives: A Story of Financial and Environmental Innovation
“This is a well organized, presented, and written book. The writing is exceptionally jargon-free and user-friendly. It should be a great success.”Robert A. G. Monks, Lens Governance Advisors, and author of Corporate Governance, Corporate Valuation for Portfolio Investment, The New Global Investors, Corpocracy, Capitalism Without Owners Will Fail, Power and Accountability, and The Emperor’s Nightingale
“In the context of thinking that ‘the organization’ is the most important innovation of mankind, writing a book titled Governance Reimagined is quite ambitious. But David Koenig has delivered! I will recommend this book to friends and people I meet on my way.”Knut Kjaer, Chairman, FSN Capital, former President, RiskMetrics Group, and former Chief Executive Officer, Norges Bank Investment Management, the Norwegian Sovereign Wealth Fund
“Governance Reimagined is an insightful exploration into the design, practice, and underpinnings of how organizations best use and manage risk in this postfinancial crisis period. It is a book that will benefit anyone involved with designing or managing an organization, no matter what the focus of that enterprise.”Michael A. M. Keehner, Adjunct Professor of Finance and Economics, Columbia Business School, and board member, Oppenheimer Holdings
“Governance Reimagined is brilliantly simple to understand. The relevance to today’s corporate boards and C-suite executives who have gone through the worst period of economic turmoil in nearly a century jumps out at the reader in every chapter. Every board member and CEO who worried over unfathomable explanations of what can or did go wrong in an organization need to read this book.”Allan M. Grody, President, Financial InterGroup Holdings Ltd; founder and retired partner-in-charge, Coopers & Lybrand’s Financial Services Consulting Practice; Adjunct Professor, New York University Stern School of Business; editorial board member, Journal of Risk Management in Financial Institutions
About the Author
DAVID R. KOENIG is the Chief Executive Officer of The Governance Fund Advisors, LLC, and the Chief Investment Officer of Ram Investment Advisors, LLC. He works to discover hidden value in companies based on their corporate governance. Koenig has a long history of work on governance and risk management, having served as the chair of the board of directors of the Professional Risk Managers’ International Association (PRMIA) from 2002 2005; as the lead risk management executive at three companies; and as an entrepreneur, having successfully launched multiple for-profit and nonprofit organizations. In 2010, he was chosen as a winner of the inaugural Management Innovation eXchange’s M-Prize competition for his idea Risk Capital as Commons: Distributive and Networked Governance. In 2008, he was bestowed the Higher Standard Award by PRMIA, that organization’s top honor. Koenig has also published numerous articles in popular and academic journals and is an editorial board member of both the International Journal of Services Sciences and the Journal of Risk Management in Financial Institutions. He has been a featured speaker at over seventy events on four continents.
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