Financial Darwinism: Create Value or Self-Destruct in a World of Risk

by Leo M. Tilman; Foreword by: Edmund Phelps

• ISBN13: 9780470414767
• ISBN10: 0470414766
• Format: eBook
• Copyright: 2009-04-01
• Publisher: Wiley

Summary

In Financial Darwinism, author Leo Tilman lays the groundwork for understanding the new financial order by introducing his evolutionary thesis and then outlines an actionable decision-making framework that enables financial institutions and investors to fully leverage the power of business strategy, corporate finance, investment analysis, and risk management. Financial Darwinism is an invaluable road map to today's financial world and an essential guide to surviving and thriving during these challenging times.

Table of Contents

Foreword

Preface

Acknowledgments

Understanding and Navigating the Financial Revolution

Introduction: The Need for Transformational Thinking

From George Bailey to the Golden Age

Accounting for Profits the Old Fashioned Way

The ôGreat Moderationö As An Evolutionary Catalyst

Economic Performance in the Dynamic New World

Pressures on Static Business Models

Dynamic Finance Perspective on Financial Crises

Pillars of Strategic Decision Making

Value Creation Through Dynamism and Business Model Transformations

Beyond the Façade: The Importance of Risk-Based Transparency

The Old Regime and its Demise

Economic Performance and Viability of Financial Institutions

Static Business Models

Dominant Forces: The Future That Has Already Happened

Pressures on Static Business Models

The Dynamic New World

Risk-Based Economic Performance

Balance Sheet Arbitrage

Principal Investments

Systematic Risk Exposures

Fees and Expenses

Capital Structure Optimization

Economic Performance Attribution

Business Model Transformations

Pillars of Strategic Decisions in a Dynamic World

Responsive Recalibrations of Business Models

Full-Scale Business Model Transformations

Making the Strategic Vision a Reality

The Road to Financial Darwinism

Real-World Business Model Transformations

Stakeholder Communication & Equity Valuation in a Dynamic World

Economic Value Creation (and Destruction) by Non-Financial Corporations

The Infamous ôCarry Tradeö and the Old Ways of Thinking

A Dynamic Finance Perspective on Modern Financial Crises

Beyond the Façade: The Need for Risk-Based Transparency

Conclusion

Epilogue: Financial Darwinism and the Crisis of 2007-2008

The Risk-Based Economic Performance Equation

A Case Study in Dynamic Finance

Notes

References

About the Author

Index

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