Risk: The New Management Imperative in Finance

1. Global Risk Management's Emergence.
Technology and Communications.
Quantitative Models.
Dealers in Flux, Too.
Major Messages in This Book.
Wrap-Up.

2. The Full Spectrum of Risks.
Operational Risk.
Other Nonfinancial Risks.
Wrap-Up.

3.The Contours of Financial Risk.
Funding Risk: The Primal Arc.
Markets and Risk.
Basis Risk.
Alternative Views an Insights.
New Measurement Tools and Management Techniques.
Credit Risk.
The Contours of Credit Risk.
Portfolio Risk.
Our Journey
Wrap-Up

Section II MARKET RISK MANAGEMENT.

4. Market Risk: Tools and Uses.
Hedge Example.
Arbitrage.
Speculation.
Wrap-Up.

5. Commodity Market Risk Management.
Case Study: Big Auto Co.
Case Study: Innovative Enron.
Commodity Market Features.
Wrap-Up.

6. Currency Market Risk Management.
Market Dynamics.
Valuation and Risk Mechanics.
Risk Illustrations.
End Users.
Intermediaries.
Wrap-Up.

7. Fixed-Income Market Risk Management.
Market Dynamics.
Time Matters.
Valuation.
Risk Mechanics.
Risk Illustrations.
Corporate Users.
Dealers.
The Investors.
Wrap-Up.

8. Equity Market Risk Management.
Valuation and Risk Mechanics.
Risk Illustration.
Equity Derivatives.
Dealers and End Users.
Wrap-Up.
Market Risk Summary.

Section III CREDIT RISK MANAGEMENT.

9.The Schism in Credit Risk Management.
Credit Risk Management Difficulties.
Wrap-Up.

10.Credit Risk Management for Trading.
The Variable Exposure Problem.
Pre-Settlement and Settlement Risk.
Monte Carlo Simulation.
Credit Risk versus Exposure.
Credit Limit Problems.
Charging for Credit.
Systemic Concerns.
Wrap-Up.

11. Credit Risk Management for Traditional Lending.
The Traditional Credit Process: Commercial Loans.
Competition and Change to the Process.
Summary of Changes to the Process.
The Prior Models for Credit Risk.
The New Models for Credit Risk.
Case Study: Bank of Montreal.
Credit Market Trends.
Wrap-Up.

Section IV RISK IN PORTFOLIOS

12. Market Risk in Portfolios.
Portfolio Risk Measures: Their Evolution.
Forecasting for VaR.
VaR Summary.
Stress Testing.
The Lessons of 1998.
Wrap-Up.

13. Simulation.
Case Study: Global Oil Co.
Wrap-Up.

Section V DEVELOPING A GLOBAL RISK MANAGEMENT PROCESS.

14. Risk Management: The Vision and the Reality.
The Vision for Risk Management: Go Global.
The Reality at Global Financial Institutions.
Wrap-Up.

15. The Global Risk Management Development Model.
Management Direction.
Risk Management Development Projects.
Integrating with the Operating.
Infrastructure.
Wrap-Up

16.Developing GRM: What Works, What Doesn't.
The Chase Example.
Features of Success.
Pitfalls to Avoid.
Wrap-Up.

Conclusion.
The Ten Commandments for Going Global with Risk.
Appendix: Financial Risk Definitions.
Notes.
Index.