A Risk Professional’s Survival Guide: Applied Best Practices in Risk Management

Applied Risk Management as a Science and an Art Up-and-coming risk management practitioners need a new framework—and so does everyone else. After 2008, we understand the limitations of lopsidedly quantitative risk analysis in excruciating detail. A Risk Professional's Survival Guide takes a more balanced tack. Complex equations are no substitute for judgment and experience, and knowing how to use the right equations at the right time is invaluable. A Risk Professional's Survival Guide is appropriate for readers with technical backgrounds as well as general or executive readers. It follows the risk management story of SifiBank, a fictional, too-big-to-fail financial institution that is rethinking risk on the heels of a significant bailout. Using synthetic data, including SifiBank's detailed balance sheets, you'll be able to work through realistic problems and see how the results ripple throughout the business. For those who want to get their hands dirty, Excel/VBA workbooks are available as an interactive add-on. Chapter overviews and summaries will be of interest to executives and practitioners in need of a desk reference. A Risk Professional's Survival Guide is a must read whether you are a risk professional or executive.

Preface Acknowledgments About the Author Chapter 1: Navigating Risk at SifiBank Chapter 2: Overview of Financial Risk Management Chapter 3: Risk Governance and Structure Chapter 4: Economic Capital, Risk–adjusted Performance and Capital Allocation Chapter 5: Credit Risk Theory Chapter 6: Consumer Credit Risk Measurement Chapter 7: Commercial Credit Risk Chapter 8: Credit Risk Mitigation Chapter 9: Interest Rate Risk Chapter 10: Market Risk Chapter 11: Liquidity Risk Management Chapter 12: Market Risk Hedging Chapter 13: Hedging Interest Rate Risk Chapter 14: Operational Risk Management Chapter 16: Toward Integrated Risk Management Answer Key Index

CLIFFORD ROSSI is Professor-of-the-Practice and Executive-in-Residence at the Robert H. Smith School of Business at the University of Maryland. He also has nearly 25 years' experience in banking and government. Dr. Rossi's most recent position was Managing Director and Chief Risk Officer for Citigroup's Consumer Lending Group. He has also held senior risk management positions at Freddie Mac and Fannie Mae. Dr. Rossi is frequently quoted on financial policy issues in major newspapers and has appeared on Fox News, C-SPAN, and CNN's Situation Room .