Risk Management

Author: (Canada) Crouhy (Crouhy/M) et al.
Publisher:
Publication Date: 2005-01-01
Features: This book is a comprehensive action guide for bankers and financial managers to conduct effective risk management. Risk Management is a book that comprehensively addresses risk management concepts, with a focus on financial institutions. The analysis of credit risk covered in this book is particularly timely and practical. The book provides an in-depth analysis of credit risk, liquidity risk, and operational risk, including various models and methodologies that can be used to measure and manage these risks. The authors of this book are highly qualified, integrating the highly complex high-level research background of scholars with the rich daily risk management experience in major financial institutions. The explosive growth of global competition, the increasing regulatory environment, and the ever-changing innovative product portfolios, complex derivatives, and asset securitization have pushed risk management to the forefront of today's financial activities. Managers and companies striving to understand this environment often find themselves wasting valuable time searching for relevant details, but ignorant misinterpretations or misguided hedging strategies can actually create risks. The authors of this book have integrated the entire field of risk management, from policies to methodologies, as well as the data and technical infrastructure. Risk Management covers investment and hedging strategies, including innovative derivatives, credit risk, and securitization techniques—essentially, a one-stop reference for everything. The three authors of this book are experienced financial experts with unparalleled comprehensive experience in applying risk management in banking, corporate, and academic settings. They guide readers through key risk management issues, emphasizing specific and effective techniques and analyses. This book will help readers quickly and thoroughly understand the challenges of today's complex financial risk management. Specifically, the expert analysis and proven recommendations provided in this book include:
- Integrated Risk Management: How to understand and develop the necessary tools to measure and manage a company's entire risk.
- Regulatory Environment: Introducing the policy recommendations of the G-30, the Bank for International Settlements (BIS) regulations, and how to determine whether you are eligible to use internal models instead of the standard methods proposed by the Basel Committee.
- Capital Adequacy: How to allocate economic capital as a function of risk.
- Practical Measurement Issues: Using historical, implied, and stochastic models to measure volatility, as well as a useful review of measuring correlations and capturing yield curves.
- Future Considerations: Commenting on the potential impact of the BIS 2000 rules on future risk management practices.
Risk management issues in banking and corporate sectors have never been as complex or critical as they are today. As we enter the unknown territory of the 21st century, this book will serve as either a fundamental guide for financial risk management in institutions, a textbook focused on bank risk management, or an unprecedented reference book covering every important aspect of the field. It will provide readers with the most up-to-date analysis of risk management, a field that is destined to grow increasingly important.