Financial Risk Management

In the field of financial risk management, the 'sell side' is the set of financial institutions who offer risk management products to corporations, governments, and institutional investors, who comprise the 'buy side'. The sell side is often at a significant advantage as it employs quantitative experts who provide specialized knowledge. Further, the existing body of knowledge on risk management, while extensive, is highly technical and mathematical and is directed to the sell side.

This book levels the playing field by approaching risk management from the buy side instead, focusing on educating corporate and institutional users of risk management products on the essential knowledge they need to be an intelligent buyer. Rather than teach financial engineering, this volume covers the principles that the buy side should know to enable it to ask the right questions and avoid being misled by the complexity often presented by the sell side.

Written in a user-friendly manner, this textbook is ideal for graduate and advanced undergraduate classes in finance and risk management, MBA students specializing in finance, and corporate and institutional investors. The text is accompanied by extensive supporting material including exhibits, end-of-chapter questions and problems, solutions, and PowerPoint slides for lecturers.
Contents: Introductory Concepts:Introduction and OverviewUnderstanding the Nature of RiskPrinciples of Risk, Return, and Financial Decision MakingFoundations of Financial Risk Management:Basic Concepts of Financial Risk ManagementThe Financial Risk Management EnvironmentThe Value of Risk Management and HedgingManaging Market Risk:Measuring Financial Market RiskManaging Market Risk with Forward and Futures ContractsManaging Market Risk with SwapsManaging Market Risk with OptionsManaging Non-Market Risks:Managing Credit RiskManaging Operational and Other RisksAccounting, Disclosure, and Governance in Risk Management:Accounting and Disclosure in Financial Risk ManagementOrganizational Structure and Corporate Governance of Financial Risk Management
Readership: Graduate and advanced undergraduate classes in finance and risk management, MBA students specialising in finance, and corporate and institutional investors. Risk Management;Financial Risk Management;Corporate Risk Management;Derivatives;Risk;Financial Engineering0Key Features:Directed toward a previously ignored segment of the risk management market: the buy sideWritten in a relatively casual and user-friendly mannerSupported with a large number of ancillaries, including more than 200 exhibits, 300 end-of-chapter questions and problems, almost 750 PowerPoint Slides, and 50 vignettes that relate interest side stories about risk management