Risk Management Technology in Financial Services: Risk Control, Stress Testing, Models, and IT Systems and Structures

Written for professionals in financial services with responsibility for IT and risk management, Dimitris Chorafas surveys the methodology required and IT systems and structures to support it according to Basel II. The book is consistent with the risk management certification process of GARP, as well as the accounting rules of IFRS, based on research the author conducted with IASB. The author provices an in-depth discussion of the types of risk, stress analysis and the use of scenarios, mathematical models, and IT systems and infrastructure requirements.

* Written in clear, straightforward style for financial industry executives to provide necessary information for risk control decisionmaking
* Consistent with GARP, IFRS and IASB risk management processes and procedures
* Explains stress testing and its place in risk control

Contents

Foreword, by Francis-luc Perret
Preface

Part 1 Innovation, risk, and return
Chapter 1 Innovation in finance
Chapter 2 What is meant by risk management?
Chapter 3 Complxity of risk control with derivatives
Chapter 4 Intergrating risk management through an enterprise architecure
Chapter 5 Case studies on big product problems that went unattended
Part 2 Risk control methodology and advanced models
Chapter 6 A methodology for risk management
Chapter 7 The contribution of models to experimentation
Chapter 8 Simulation
Chapter 9 Using knowledge engineering for risk control
Chapter 10 Optimization through genetic algorithms
Chapter 11 Testing, backtesting, post-mortems and experimental methodology
Part 3 Increasing the effectiveness of information systems support
Chapter 12 Adding value to risk control through IT and organization
Chapter 13 Technology for time management, high frequency financial data and high impact events
Chapter 14 Project management for IT and risk control
Chapter 15 Implementing design reviews
Chapter 16 Quality, reliability and availability
Chapter 17 Being in charge of IT costs

Index