The Risk Management Process: Business Strategy and Tactics - Hardcover

Culp, Christopher L.

Hardcover

ISBN 10: 047140554X ISBN 13: 9780471405542

Publisher: Wiley, 2001

Synopsis

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.

About this title

From the Back Cover

Praise 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 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 real-world 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.

From the Inside Flap

Risk 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.

Edition details

• Publisher: Wiley
• Publication date: 2001
• ISBN 10: 047140554X
• ISBN 13: 9780471405542
• Binding: Hardcover
• Language: English
• Edition number: 1
• Number of pages: 624