Managing Risk in the New Economy

by Chorafas, Dimitris N.

• ISBN13: 9780735202177
• ISBN10: 0735202176
• Format: Hardcover
• Copyright: 2001-04-01
• Publisher: Penguin Group USA

Summary

This is a wake up call for financial professionals from a world-renowned authority on risk management. Chorafas predicts a dire end to the rampant uncertainty as credit and market meltdowns will rock financial and industrial organizations worldwide. This guide provides an authoritative blueprint for averting impending financial disasters.

Table of Contents

Foreword	vii
Preface	ix
Acknowledgments	xiii
PART ONE Emerging Industries, the Internet Economy, and the Need for Redefining Management Control	1	(102)
The Impact of Risk and Uncertainty on Financial Institutions	3	(22)
The First Big Shock of the New Economy: Meltdown in East Asia	25	(21)
The Breakdown of Internal Controls: Sumitomo Corporation	46	(22)
Creative Accounting and Lax Auditing: Kidder Peabody	68	(19)
Lessons from the Long-Term Capital Management Meltdown	87	(16)
PART TWO Playing at the Edge of the Abyss: Learning from LTCM and Other Recent Disasters	103	(102)
Managing Exposure to Greater Risk and More Types of Risk	105	(17)
Managing Risk in Highly Leveraged Institutions	122	(20)
The Art of Risk Management with Hedge Funds	142	(17)
The Bottom Line in Credit Risk: LTCM and the United Bank of Switzerland	159	(20)
The Dangerous Game of Hiding Major Losses Through Derivatives: The Fall of the Tiger Management Fund	179	(26)
PART THREE Risk Management Responsibilities in the New Economy	205	(140)
Senior Management Accountability in the New Economy	207	(25)
The Roles, Functions, and Responsibilities of Senior Bank Management	232	(26)
Staffing the Risk Management Department	258	(22)
Why Superior Organization Supports the Risk Management Function	280	(23)
Managing the Transfer of Risk Between Different Instruments	303	(23)
Accounting for Potential Risk Exposure in the New Economy	326	(19)
Conclusion: Accounting for Different Types of Risk and Their Impact	345	(6)
Index	351