The ART of Risk Management Alternative Risk Transfer, Capital Structure, and the Convergence of Insurance and Capital Markets

by Culp, Christopher L.

• ISBN13: 9780471124955
• ISBN10: 0471124958
• Format: Hardcover
• Copyright: 2002-03-29
• Publisher: Wiley

Summary

Learn about today's hottest new risk management tools One of the hottest areas of finance today, alternative risk transfer, or ART, refers to the use of various insurance products to manage market, credit, operational, legal, environmental, and other forms of risk. As the capital and insurance markets continue to converge, the number and complexity of new risk-defraying insurance products available to corporations, brokerages, money managers and other financial professionals will continue to grow. Expert Christopher L. Culp uses case studies of recent ART transactions used by risk managers to put the field into perspective for financial professionals and to acquaint them with the various types of risk control products now available. In addition he explores, in-depth, the links between ART, derivatives and bank-arranged risk financing, and he explains the key differences between classic insurance products and financial guarantees, risk financing, bundled layering, and other ART forms.

Author Biography

CHRISTOPHER L. CULP is the Managing Director of CP Risk Management LLC and an Adjunct Associate Professor of Finance at the Graduate School of Business of the University of Chicago. Formerly President of Risk Management Consulting Services, Inc., and Senior Examiner in the Supervision and Regulation Department of the Federal Reserve Bank of Chicago, Dr. Culp is also Senior Fellow in Financial Regulation with the Competitive Enterprise Institute in Washington, D.C., and a recent Visiting Lecturer in Risk and Insurance at the Institut für Finanzmanagement, Universität Bern, Switzerland. He is the author of The Risk Management Process: Business Strategy and Tactics and coeditor, along with Merton H. Miller, of Corporate Hedging in Theory and Practice: Lessons from Metallgesellschaft. Culp holds a PhD in finance from the Graduate School of Business of the University of Chicago and a BA in economics from the Johns Hopkins University.

Table of Contents

ACKNOWLEDGMENTS.

PREFACE: COMPREHENSIVE APPROACH TO CORPORATION FINANCE.

PART I: THE QUEST FOR OPTIMAL CAPITAL STRUCTURE.

CHAPTER 1: The Nature of Financial Capital.

Appendix 1-1: A Brief Introduction to Capital Theory.

Appendix 1-2: A Review of Basi