Tail Risk Management: Building A Resilient Financial Business In A Volatile World

This the COLORED version of the book. Although quantitative methods are used most often in risk assessment, their usefulness wanes in the realm of tail risk management. To effectively mitigate extreme risks and preserve a firm’s survivability, the focus must be on building a resilient business model.Over the last ten years, large and well-respected financial institutions have experienced failure in the face of tail risks, revealing the inadequate protection provided by current practice. More than just capital management, tail risk management takes a qualitative approach that involves business strategy.In Tail Risk Management, author Pascal M. vander Straeten, a twenty-five-year financial services veteran and founder of consulting firm Value4Risk, pulls best practices from across industries to provide a new risk management framework. These principles will guide a business toward necessary changes in modern management practices, regulations, and cultures that can be applied on an enterprise-wide basis, addressing extreme risks at any stage in their development.In the face of a systemic crisis, a resilient business model will provide strong lines of defense against failure. Unquantifiable uncertainties will always exist, and traditional risk management approaches are not adequate. Using this extensive guide, learn what needs to change and why—and how to implement a potentially business-saving strategy.

Pascal M. vander Straeten spent twenty-five years in the financial services industry, specializing in the field of financial risk management. Many of these years were spent overseas as an international senior executive, in cities such as New York, London, Rome, Madrid, Luxembourg, Munich, Brussels, and Paris. In 2012, vander Straeten founded Value4Risk, a research and consulting firm, which expanded from its Canberra location into Dallas in 2015. Value4Risk provides training in extreme risk management within the modern realm of financial risk management and geopolitics. Originally from Belgium, vander Straeten holds a master's degree in applied economics from the University of Antwerp and an executive MBA from the University of Washington. He also holds a postgraduate degree in international relations from the University of Louvain. Fluent in five languages (Dutch, French, English, German, and Italian), he lives in Texas with his wife, Barbara.