Managing Extreme Financial Risk, 1st Edition

  • Published By:
  • ISBN-10: 0124172229
  • ISBN-13: 9780124172227
  • DDC: 658.155
  • Grade Level Range: College Freshman - College Senior
  • 172 Pages | eBook
  • Original Copyright 2013 | Published/Released May 2014
  • This publication's content originally published in print form: 2013

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Managing Extreme Financial Risk addresses the need for better management strategies in light of increased market risk and volatility in financial institutions' revenue models.  Top officials from the financial and regulatory industries point to real corporate issues, showing how institutions react to financial crises. From first-hand experiences, they explain how effective sustainability management does not just prevent being blindsided; it also leads to proactive solutions that enhance an institution's strength to weather a sudden financial crisis, add significant shareholder value, and reduce systemic risk. Readable, coherent, and logical, Managing Extreme Financial Risk shows how extreme risk needs to be handled when the cost of being wrong means the difference between life and death of the institution.Based on the firsthand experiences and perspectives of senior-level executives. Concentrates on extreme risk, when the cost of being wrong is not the loss of profits, but the death of the institution. Written to be easily understood without algorithms, models, and quants.

Table of Contents

Front Cover.
Half Title Page.
Other Frontmatter.
Title Page.
Copyright Page.
Dedicated to Walter B. Wriston.
About the Author.
About the Contributors.
1: The Need for a New Approach to Tail-Risk Management.
2: Sustainability Management is Critical.
3: Tail Risk is the Culprit.
4: Need for a Distinct Focus on Tail Risk.
5: Sole Focus on Traditional Risk Management can be Dangerous.
6: Usefulness and Limits of Quant Models.
7: Elements of Sustainaliblity Management.
8: If You can’t Measure it, You can’t Manage it.
9: Simplicity to Counter Complexities of Revenue Models.
10: A New Measure for Effective Sustainability Management.
11: Continuous Readiness is Critical.
12: Implementation Issues and the Wide-Reaching Impact on Institutions and the Financial System.
13: Effective Sustainability Management.
14: Paradoxical Capital Problem.
15: Capital as the Last Defense vs the First Defense.
16: Tail Risk, Regulatory Supervision, and Systemic Risk.
17: Convergence of Regulatory Objectives and Institutional Interests.
18: Telling Your Story Effectively to Alleviate Marketplace Anxiety.
19: Critical Factors in Preparing for an Extreme Financial Crisis.
20: From the Bane of the Revenue Model to a Competitive Advantage.
21: Adapting Organizations to Effective Sustainability Management.