Essentials of Risk Management (3rd edition)

The go-to guide to financial risk management for nearly 20 years, The Essentials of Risk Management has been fully updated to address important social, economic, and technological changes that affect your investments.

This third edition continues to cover all the relevant topics, from the structure and workings of various financial markets and the financial instruments used in risk management, to best-practice risk policies, methodologies and infrastructure. Using simple language and step-by-step techniques, the authors explain how to implement risk management programs in complex areas like market risk management, credit portfolio management, economic capital, asset-liability management and stress testing. New chapters address:

• The consequences of the COVID-19 pandemic from a risk perspective
• The emergence of new technologies that have facilitated the explosion of FinTech companies, which provide less expensive and more user-friendly services than traditional banks
• The dramatic increase in the size and scale of cyber risk, anti-money laundering risk, reputation risk, and the concept of risk appetite and risk-adjusted returns
• Risk management issues specific to startups

You don’t have to lurch from crisis to crisis. Whether you’re a senior manager trying to assess risk in a rapidly changing environment or a corporate CFO struggling to follow emerging rules, standards, and conventions, The Essentials of Risk Management provides a detailed, up-to-the-minute, non-mathematical look at risk management, with clear objectives and practical techniques for achieving them.

About the authors:

DR. MICHEL CROUHY is a managing partner at Black Diamond Advisory, serves as a senior advisor to NATIXIS. Previously, he was head of Research and Development at Natixis and head of Risk Analytics at the Canadian Imperial Bank of Commerce. Crouhy is a member of the Research Advisory Council of the Global Risk Institute, a member of the Scientific Executive Board of the Louis Bachelier Institute, and a cofounder of PRMIA.

DR. DAN GALAl is the Abe Gray Professor (Emeritus) of Finance and Business Administration at the Hebrew University, Jerusalem, School of Business Administration.

He serves on the boards of a new digital bank and a few technology startups. Dan is a cofounder of PRMIA.

You can follow Dr. Dan Galai on Twitter/X here.

DR. ROBERT MARK is a managing partner at Black Diamond Risk and serves on several boards.

Previously, he led treasury/trading activities and was a Chief Risk Officer at Tier 1 banks. Mark was the partner in charge of a top-tier accounting company’s Financial Risk Management Consulting practice, is the founding executive director of the MFE Program at UCLA, a past GAP Risk Manager of the Year, and a cofounder of PRMIA.