Risk Management

Introduction
The traditional role of the risk manager as corporate steward is evolving as organizations face an increasingly complex and uncertain future. The mandate to clearly identify, measure, manage, and control risk has been expanded and integrated into best practice management of a bank. Today's risk manager is a key member of the senior executive team who helps define business opportunities from a risk-return perspective, presents unique ways of looking at them, has direct input into the configuration of products and services, and ensures the transparency of all the risks. Innovation necessitates new yardsticks for measuring and monitoring the resulting activities. The savvy corporate leader uses risk management as both a sword and a shield.
At the end of the last millennium, financial institutions and investors experienced increased volatility in the major financial and commodity markets, with many financial crises. At the start of the new millennium, we are in the midst of a technological revolution resulting in changes in the operation of markets, increased access to information, changes in the types of services available to investors, as well as major changes in the production and distribution of financial services.
If there is concern about an institution's ability to manage risk, then its share price will be penalized.
Risk is a cost of doing business for a financial institution and consequently best practice risk management is a benefit to our shareholders. To manage the risks facing an institution we must have a clearly defined set of risk policies and the ability to measure risk. But what do we measure? And how do we measure such risks? We must also have a best practice infrastructure. The starting point is that we need a framework.
This book provides such a framework. The content of the book is consistent with our own risk management strategy and experience. Our risk management strategy is designed to ensure that our senior management operates together in partnership to control risk while ensuring the independence of the risk management function. Improvements in analytic models and systems technology have greatly facilitated our ability to measure and manage risk. However, the new millennium brings new challenges. There are risks that we can identify and measure and there is the uncertainty of the unknown. The challenge facing risk managers is to minimize the consequences of the unknown. This book should help all risk and business managers address the issues arising from risk and uncertainty.

And you will get further information, please read this book:

Risk Management
By:
Michel Crouhy
Dan Galai
Robert Mark

Mc Graw-Hill Book

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