Financial Enterprise Risk Management

An accessible guide to enterprise risk management for financial institutions. This second edition has been updated to reflect new legislation.

Paul Sweeting (Author)

9781107184619, Cambridge University Press

Hardback, published 7 August 2017

614 pages, 120 b/w illus. 25 tables 150 exercises
25.5 x 18.2 x 3.1 cm, 1.36 kg

'In total, this book provides not only a very comprehensive and accessible introduction to financial enterprise risk management, but also covers advanced topics such as Bayesian networks and current regulatory developments such as Basel III. It clearly demonstrates the importance of risk management for financial institutions and outlines detailed steps and procedures that can be taken to obtain a firm understanding of risk. The book discusses the specific advantages and limitations of current risk management tools and frameworks and provides rich guidance on how to implement ERM on a comprehensive level.' Matthias M. M. Buehlmaier, zbMATH

This comprehensive, yet accessible, guide to enterprise risk management for financial institutions contains all the tools needed to build and maintain an ERM framework. It discusses the internal and external contexts with which risk management must be carried out, and it covers a range of qualitative and quantitative techniques that can be used to identify, model and measure risks. This new edition has been thoroughly updated to reflect new legislation and the creation of the Financial Conduct Authority and the Prudential Regulation Authority. It includes new content on Bayesian networks, expanded coverage of Basel III, a revised treatment of operational risk and a fully revised index. Over 100 diagrams are used to illustrate the range of approaches available, and risk management issues are highlighted with numerous case studies. This book also forms part of the core reading for the UK actuarial profession's specialist technical examination in enterprise risk management, ST9.

1. An introduction to enterprise risk management
2. Types of financial institution
3. Stakeholders
4. The internal environment
5. The external environment
6. Process overview
7. Definitions of risk
8. Risk identification
9. Some useful statistics
10. Statistical distributions
11. Modelling techniques
12. Extreme value theory
13. Modelling time series
14. Quantifying particular risks
15. Risk assessment
16. Responses to risk
17. Continuous considerations
18. Economic capital
19. Risk frameworks
20. Case studies
21. Solutions to questions
References
Index.

Subject Areas: Applied mathematics [PBW], Optimization [PBU], Investment & securities [KFFM], Risk assessment [GPQD]