The Risk Management Process : Business Strategy and Tactics

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.