Financial Institutions Management: A Risk Management Approach (McGraw-Hill/Irwin Series in Finance, Insurance, and Real Est)
This book focuses on managing return and risk in modern financial institutions. The central theme is that the risks faced by managers and the methods and markets through which these risks are managed are becoming increasingly similar, whether an institution is chartered as a commercial bank, a savings bank, an investment bank, or an insurance company. Although the traditional nature of each sector’s product activity is analysed, a greater emphasis is placed on new areas of activities such as asset security, off-balance-sheet banking and international banking.
User Ratings and Reviews
4 Stars Excellent first risk management book
There are a lots of ways to explain the banking business. Many books try to describe regulatory policies, laws, banking procedures, etcetera.
This book doesn’t. It tries to explain the business in a risk management point of view, regardless you are an incumbent in banking or assurance.
All types of risk: market, credit, equity, operational,and so forth. The style is very easy, the concepts clear, and the maths according to a first global banking risk book. Easy to read and understand. Furthermore, it adds some all time-bank situations in order to put the theory into the ground.
Nice touch!!
3 Stars A good entry-level book on Financial Institution Risk
Using only a minimal amount of mathematics,
Professor Saunders describes a very broad
range of risks run by a Financial Institution.
A particularly good description is given
for interest rate risk management of a
standard banking portfolio.
4 Stars A comprehensive book on risk management from a financial institution’s perspective
The text covers everything you would expect from a book about risk management: credit risk, IR risk, derivatives, securitization, etc. In my opinion the authors have done a nice job of explaining various models/concepts/ideas in a clear and concise fashion.
It’s also noteworthy to mention that if you are using this book you’re probably using it in a class. Head’s up - the chapter problem solution keys provided by your professor from the publisher (the MSWord files the publisher distributes) contain a surprisingly large number of trivial errors here — ie. incorrect algebra and other errors. The problems are otherwise helpful in terms of understanding the material nonetheless.
3 Stars Okay
Great deal, but the edition it was listed under was the worng one. I thought I was getting the right edition, but it was an older one. It still works though.
5 Stars Excellent introduction to risk management
The book is very good and it starts describing the special nature of financial institutions and the industry. Then, in the second part you have complete chapters relating to every risk management: interest rate risk (maturity, repricing gaps and duration focuses, liquidity (e.g.maturity ladder), market risk (standarized Basel Committee and VaR approaches) credit risk (including Basel Committe standarized approach, defalult risk models like credit scoring), operating costs and technology risk, FX risk, sovereign risk.
In the last part there is a good section which describes how to manage risks , including liabilty and liquidity management,deposit insurance, capital adequacy, geographic diversification, derivatives, the new credit risk management techniques and securitization.
I had the chance to have Profesor Saunders as a risk management teacher and I only say that as his classes, his book is great. It shows you the best introduction to risk management. It discusses about financial institutions (banks, insurance and securities). That book just helped me to see financial institutions under the risk focus. I really recommend this book to understand risk management.
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