The Risk Management Process: Business Strategy And Tactics

The Risk Management Process: Business Strategy And Tactics

Integrates essential risk management practices with practical corporate business strategies Focusing on educating readers on how to integrate risk management with corporate business strategy-not just on hedging practices-The Risk Management Process is the first financial risk management book that combines a detailed, big picture discussion of firm-wide risk management with a comprehensive discussion of derivatives-based hedging strategies and tactics. An essential component of any corporate business strategy today, risk management has become a mainstream business process at the highest level of the world's largest financial institutions, corporations, and investment management groups. Addressing the need for a well-balanced book on the subject, respected leader and teacher on the subject Christopher Culp has produced a well-balanced, comprehensive reference text for a broad audience of financial institutions and agents, nonfinancial corporations, and institutional investors.From the Inside FlapRisk managers in the 1980s and 1990s were frequently mid-level executives within the corporate hierarchy on Wall Street and Main Street. They managed exposures to risk of all types in a piecemeal fashion. Not so in the last few years. Risk-be it market, credit, or operational-is now actively managed on a firmwide basis by senior risk professionals reporting to the board level of many firms. Today, risk management is an essential component of any corporate business strategy. Filling the need for a well-balanced book on the subject, The Risk Management Process provides an integrated framework to help you go beyond mere hedging to implement practical, firmwide risk management strategies within your organization. Risk management is sound general management, pure and simple. This is the first book to combine a detailed, big-picture view of firmwide risk management with a theoretical but real-world discussion of best hedging practices. Here, Christopher Culp emphasizes why risk management is critical to the success of your business organization and how to engage in successful risk management practices tailored to your firm's underlying business activities. The Risk Management Process explains: * How corporate finance is the backbone of risk management strategy * Why models of individual hedging do not extend to models of corporate hedging * Why risk management can add value for companies and their shareholders * The basic principles of ex ante risk-adjusted capital allocation * The tactics of using securitization, insurance, securities, derivatives, and other alternative risk transfer techniques to manage risk In clear and accessible language, Culp demystifies and explains risk management as a business process-as essential to companies as the widgets they make and the services they provide.From the Back CoverPraise for The Risk Management Process "True to its claim, The Risk Management Process is a rigorous yet lucid and broadly accessible account of how the timeless principles of corporate finance apply to the management of risk. Written by an experienced consultant with impeccable academic credentials and incisive analytical thinking, this book is a must-read for the senior manager and corporate treasurer who aspire to integrate risk management with corporate financial management and business strategy."-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