The risk management process

-George M. Constantinides, Leo Melamed Professor of Finance, University of Chicago Graduate School of Business

"Christopher Culp's The Risk Management Process: Business Strategy and Tactics is a comprehensive treatment of the issues that face risk managers today. His book constructs a bridge to connect the theory and the practice of risk management, and Culp leads readers over that bridge with great care."

-Peter Tufano, Sylvan C. Coleman Professor of Financial Management Harvard Business School

"An unusually simple and lucid analysis of the risk management process. This book will be valuable for anyone trying to manage financial risk!'

-Ken French, NTU Professor of Finance, Sloan School of Management, MIT

"As opposed to offering us another dry, one-size-fits-all, mathematical approach to measuring or managing one risk or another, this book provides a general management approach to this important facet of managing any business in the twenty-first century, yet doesn't shy away from sharing with the reader the underlying and necessary quantitative thinking that is required to, perform the role of financial risk management. Culp easily switches between a statistical approach to risk measurement and a realworld approach to the particular exposure(s). In addition, it was refreshing to see the amount of time he spent on drawing the distinction between managing risk on Wall Street and managing the same risk within a corporation, which may have very different: goals and success benchmarks."

-Brent Callinicos, CPA, Treasurer, Microsoft Corporation

"The Risk Management Process is at the same time scholarly and comprehensive, yet readable, realistic, and insightful. Unquestionably, this is the right book at the right time, destined to become the standard reference work in the field!'

-Steve H. Hanke, Professor of Applied Economics, Johns Hopkins University, and Chairman, The Friedberg Mercantile Group, Inc.

Sommaire

• Introduction
• Part One
• Risk management and corporate finance
• Chapter 1
• The nature of Risk
• Chapter 2
• Risk aversion, Insurance, and hedging
• Chapter 3
• The irrelevance of Corporate financing and
• Risk management decisions
• Chapter 4
• Increasing expected cash flows op reducing the cost of capital
• by managing Risk
• Chapter 5
• reducing conflicts between security holders and managers by
• managing Risk
• Chapter 8
• reducing conflicts among security holders by managing Risk
• Chapter 7
• controlling and exploiting informational asymmetries by
• managing risk
• Chapter 8
• Value versus cash flow versus Earnings Risk management
• Chapter 9
• Total versus Selective Risk management
• Part Two
• Risk management and business strategy
• Chapter 10
• Risk culture and Risk management business models
• Chapter 11
• Integrating people, Technology, and processes
• through enterprise-Wide risk management
• Chapter 12
• ldentifying market Risk exposures and defining Risk tolerances
• Chapter 13
• Spot, forward, and forward-like exposures
• Chapter 14
• identifying option, option-like, and real option Exposures
• Chapter 15
• Measuring and monitoring market Risk
• Chapter 16
• Identifying, measuring, and monitoring credit risk
• Chapter 17
• Identifying, measuring, and monitoring Liquidity risk
• Chapter 18
• Identifying, measuring, and monitoring operational Risk
• Chapter 19
• Identifying and Managing Legal Risk
• Part Three
• The Tactics of Risk Control
• Chapter 20
• Ex Ante Capital Allocation
• Chapter 21
• Ex post Performance Measurement and Compensation
• Chapter 22
• Internal controls
• Chapter 23
• Tactical Risk control with derivatives
• Chapter 24
• Tactical Risk control through Actual and synthetic
• asset Divestitures
• Chapter 25
• Strategic Risk control with structured Liabilities
• Chapter 26
• Insurance and art
• Notes
• Bibliography