Winning at Risk: Strategies to Go Beyond Basel -- Contents -- Foreword -- Preface -- Acknowledgments -- Introduction -- SEARCHING FOR A SOLUTION -- WHY MANAGE RISK? -- WHY IS RISK MANAGEMENT DIFFICULT TO IMPLEMENT? -- 1 What is Risk? -- THE BUSINESS OF RISK -- DEFINING RISK: LOSS, UNCERTAINTY, AND HORIZON -- MORE WAYS TO THINK ABOUT RISK -- TAXONOMY OF RISKS -- RISK AND REWARD: MODERN PORTFOLIO THEORY -- 2 Risk Management Principles -- WORDS TO LIVE BY -- KNOW YOUR RISKS -- ARTICULATE YOUR RISK APPETITE -- DEVELOP A WELL-DEFINED RISK CULTURE -- USE A COMMON LANGUAGE -- DEVELOP CAPABILITIES AND APPROACHES IN LINE WITH THE SIZE, COMPLEXITY, AND CULTURE OF YOUR ORGANIZATION -- MAKE IT TRANSPARENT AND COMPREHENSIVE -- CONSTRUCT CLEAR LIMITS AND CONTROLS -- ALIGN PERFORMANCE AND INCENTIVES TO RISK AND REWARD -- DEVELOP COMPREHENSIVE FORECASTING, STRESS TESTING, AND CHALLENGE PROCESSES -- PROVIDE ACTIVE LEADERSHIP AND DIRECTION -- CONSTRUCT STRONG GOVERNANCE AND OVERSIGHT -- MAKE CONTINUOUS IMPROVEMENTS -- 3 Building the Risk-Management Framework -- ALL THE RIGHT ELEMENTS -- YOUR RISK MANAGEMENT ORGANIZATION -- YOUR RISK CULTURE -- YOUR GOVERNANCE MODEL -- YOUR POLICIES AND PROCESSES -- YOUR DATA AND SYSTEMS -- 4 Measuring Risk and Capital -- WHY MEASURE RISK? -- LAYING OUT THE FUNDAMENTALS, FROM THE TOP DOWN -- PROBABILITY, EXPOSURE, AND SEVERITY -- PROBABILITY DISTRIBUTIONS -- EXPECTED LOSS -- UNEXPECTED LOSS AND VALUE AT RISK -- ECONOMIC CAPITAL -- THE ROLE OF DATA AND ASSUMPTIONS -- MANAGING ACROSS THE ECONOMIC CYCLE -- STRESS TESTING -- VALIDATION OF MODELS -- MODELING CREDIT RISK -- MODELING MARKET RISK -- MODELING OPERATIONAL RISK -- JUMP DIFFUSION AND EXTREME VALUE THEORY -- 5 Managing Trade-Offs Between Risk and Reward -- THE CEO CHALLENGE -- PERFORMANCE MEASURES-THE BASICS -- PERFORMANCE MEASURES-MULTI-PERIOD CALCULATIONS.

CAPITAL ATTRIBUTION AND ALLOCATION -- APPLYING PERFORMANCE MEASURES -- TOP-DOWN VERSUS BOTTOM-UP -- 6 Understanding Your Appetite for Risk -- IDENTIFYING THE RISK APPETITE -- RISK APPETITE AND ICAAP -- BUILDING THE RISK APPETITE STATEMENT -- MANAGING THE RISK APPETITE (PROCESS) -- GOVERNANCE AND RISK APPETITE -- THE LIVING WILL -- 7 Integrating Risk Management into Your Organization -- EMBEDDING RISK MANAGEMENT -- WHAT IS ENTERPRISE RISK MANAGEMENT? -- CULTURE -- INCENTIVES AND COMPENSATION -- YOUR ORGANIZATION -- LINES OF DEFENSE -- REPORTING, MONITORING, AND DECISION-MAKING -- LEVERAGING YOUR BUSINESS RHYTHM -- ERM AND COSO -- 8 Leveraging Risk for Business Excellence -- MORE THAN COMPLIANCE -- INTRODUCING THE CUSTOMER LIFECYCLE -- LEVERAGING THE UPSIDE -- MANAGING THE DOWNSIDE -- OPTIMIZATION -- 9 Basel II and Beyond -- BASEL II: WHAT'S IT ALL ABOUT? -- THE REGULATOR VIEWPOINT -- BASEL II BASICS -- SPECIAL CHALLENGES AND REQUIREMENTS -- IS IT WORTH IT? -- KEY DIFFERENCES FROM ECONOMIC APPROACHES -- BEYOND BASEL II: BASEL III AND REGULATORY REFORM -- SOLVENCY II -- IMPACTS ON FINANCIAL INSTITUTIONS AND FINANCIAL MARKETS -- NON-BANK FINANCIAL INSTITUTIONS -- TOO BIG TO FAIL -- Afterword -- About the Author -- Index.