Financial Risk Management For Dummies

Take the risk out of financial risk management

Written by bestselling author and past winner of the GARP Award’s Risk Manager of the Year, Aaron Brown, Financial Risk Management For Dummies offers thorough and accessible guidance on successfully managing and controlling financial risk within your company. Through easy-to-follow instruction, you’ll find out how to manage risk, firstly by understanding it, and then by taking control of it. Plus, you’ll discover how to measure and value financial risk, set limits, stop losses, control drawdowns and hedge bets.

Financial risk management uses financial instruments to manage exposure to risk within firms, large and small—particularly credit risk and market risk. From managing and measuring risk to working in financial institutions and knowing how to communicate risk to your company and clients, Financial Risk Management For Dummies makes it easy to make sense of the management of risk when working in various different financial institutions and concludes by covering the topic of how to communicate risk — how to report it properly and how to deal with and comply with all of the regulations.

• Covers managing risk and working as a financial risk manager
• Provides everything you need to know about measuring financial risk
• Walks you through working in financial institutions
• Demonstrates how to communicate risk

If you work in the financial sector and want to make financial risk management your mission, you’ve come to the right place!

Table of Contents

Part I: Getting Started with Risk Management
Chapter 1: Living with Risk
Chapter 2: Understanding Risk Models
Chapter 3: Taking Charge of Risk
Chapter 4: Managing Financial Risk
Chapter 5: Functions of a Financial Risk Manager

Part II: Measuring Financial Risk
Chapter 6: Valuing Risk
Chapter 7: Stress Testing for Success
Chapter 8: Speaking Greek
Chapter 9: Accounting for Extremes

Part III: Managing Financial Risk
Chapter 10: Setting Limits
Chapter 11: Stopping Losses
Chapter 12: Controlling Drawdowns
Chapter 13: Hedging Bets

Part IV: Working in Financial Institutions
Chapter 14: Trading Places
Chapter 15: Banking on Risk
Chapter 16: Managing Assets and Portfolios
Chapter 17: Insuring Risk
Part V: Communicating Risk
Chapter 18: Reporting Risk
Chapter 19: Regulating Finance

Part VI: The Part of Tens
Chapter 20: Ten One-Minute Risk Management Tips
Chapter 21: Ten Days that Shook the (Financial) World
Chapter 22: Ten Great Risk Managers in History
Chapter 23: Ten Great Risk Books