Managing Extreme Financial Risk: Strategies and Tactics for Going Concerns
- 2h 30m
- Karamjeet Paul
- Elsevier Science and Technology Books, Inc.
- 2014
Managing Extreme Financial Risk addresses the need for better management strategies in light of increased market risk and volatility in financial institutions' revenue models. Top officials from the financial and regulatory industries point to real corporate issues, showing how institutions react to financial crises. From first-hand experiences, they explain how effective sustainability management does not just prevent being blindsided; it also leads to proactive solutions that enhance an institution's strength to weather a sudden financial crisis, add significant shareholder value, and reduce systemic risk. Readable, coherent, and logical, Managing Extreme Financial Risk shows how extreme risk needs to be handled when the cost of being wrong means the difference between life and death of the institution.
- Based on the firsthand experiences and perspectives of senior-level executives
- Concentrates on extreme risk, when the cost of being wrong is not the loss of profits, but the death of the institution
- Written to be easily understood without algorithms, models, and quants
About the Author
Karamjeet Paul is the managing principal of Strategic Exposure Group. With more than 35 years of operating, finance, treasury and exposure-management experience, he has unique expertise in identifying and addressing extreme exposure from tail risk. His perspective has been gleaned from extensive hands-on experience in large global organizations, startups in entrepreneurial settings, and via advisory assignments.
In the early 1980s at Citicorp, he pioneered a framework that was adopted by the firm's senior leadership to address and manage interest-rate exposure management at the institution. Over the years this framework became the foundation of interest-rate exposure/gap management at all financial institutions. He later served as CFO of a large consumer services division and the Global Investment Bank at Citicorp.
More recently, with a focus on extreme exposure from tail financial risk—combining his experience with financial and non-financial companies—he has developed another unique framework designated as "sustainability management." By defining and quantifying the extreme-exposure dimension of the risk spectrum, this framework provides the foundation for addressing critical board-level and senior management issues to ensure that the company's sustainability as a going concern is managed proactively.
He has also identified and launched new business propositions while at Citicorp and beyond. In the 1990s, he founded a consumer healthcare information service business with a unique model. He led a talented team recruited from premier companies to create the largest consumer healthcare database in the United States and the second largest consumer health publication. These assets were deployed to develop and sell innovative services to major pharmaceutical and several health-related companies.
His operating and client experience spans businesses in multiple industries, including banking and financial services, information services, publishing, direct marketing, healthcare information, online information, business process outsourcing services, manufacturing and distribution, pharmaceuticals, and consumer packaged goods.
He received an MBA from Case Western Reserve University in Cleveland OH, and graduated from Indian Institute of Technology (IIT) in Bombay India with a Bachelor of Technology degree.
As a Big Brother, Karamjeet mentored a single-parent child from the Bronx, NY for 6 years and served as an active trustee of Big Brothers Big Sisters of New York City for over 20 years.
In this Book
-
Foreword
-
Introduction
-
Prologue
-
Sustainability Management is Critical
-
Tail Risk is the Culprit—Tail Wagging the Dog?
-
Need for a Distinct Focus on Tail Risk—In No Uncertain Terms
-
Sole Focus on Traditional Risk Management Can Be Dangerous—Days of Future Passed
-
Usefulness and Limits of Quant Models
-
If You Can't Measure it, You Can't Manage it—Taming Something That's Lurking around
-
Simplicity to Counter Complexities of Revenue Models
-
A New Measure for Effective Sustainability Management—Probable Maximum Loss
-
Continuous Readiness is Critical—A Senior Executive Who Wishes to Remain Anonymous
-
Effective Sustainability Management—From Top to Bottom
-
Paradoxical Capital Problem
-
Capital as the Last Defense vs the First Defense
-
Tail Risk, Regulatory Supervision, and Systemic Risk—Missing Links
-
Convergence of Regulatory Objectives and Institutional Interests—Alignment of Goals to Enhance Sustainability and Reduce Systemic Risk
-
Telling Your Story Effectively to Alleviate Marketplace Anxiety
-
Critical Factors in Preparing for an Extreme Financial Crisis—A Former Senior Executive Who Wishes to Remain Anonymous
-
From the Bane of the Revenue Model to a Competitive Advantage
-
Adapting Organizations to Effective Sustainability Management
-
Epilogue
YOU MIGHT ALSO LIKE
