Risk Management and Financial Institutions, Fourth Edition

  • 17h 24m
  • John C. Hull
  • John Wiley & Sons (US)
  • 2015

The most complete, up to date guide to risk management in finance

Risk Management and Financial Institutions explains all aspects of financial risk and financial institution regulation, helping readers better understand the financial markets and potential dangers. This new fourth edition has been updated to reflect the major developments in the industry, including the finalization of Basel III, the fundamental review of the trading book, SEFs, CCPs, and the new rules affecting derivatives markets. There are new chapters on enterprise risk management and scenario analysis. Readers learn the different types of risk, how and where they appear in different types of institutions, and how the regulatory structure of each institution affects risk management practices. Comprehensive ancillary materials include software, practice questions, and all necessary teaching supplements, facilitating more complete understanding and providing an ultimate learning resource.

All financial professionals need a thorough background in risk and the interlacing connections between financial institutions to better understand the market, defend against systemic dangers, and perform their jobs. This book provides a complete picture of the risk management industry and practice, with the most up to date information.

  • Understand how risk affects different types of financial institutions
  • Learn the different types of risk and how they are managed
  • Study the most current regulatory issues that deal with risk

Risk management is paramount with the dangers inherent in the financial system, and a deep understanding is essential for anyone working in the finance industry; today, risk management is part of everyone's job. For complete information and comprehensive coverage of the latest industry issues and practices, Risk Management and Financial Institutions is an informative, authoritative guide.

About the Author

JOHN C. HULLis the Maple Financial Professor of Derivatives and Risk Management at the Joseph L. Rotman School of Management, University of Toronto, and codirector of Rotman's Master of Finance program. He has been a consultant to many North American, Japanese, and European fi nancial institutions, and is the author of three books, which are widely used by both practitioners and academics, and an associate editor of eight academic journals.

In this Book

  • Introduction
  • Banks
  • Insurance Companiesand Pension Plans
  • Mutual Funds and Hedge Funds
  • Trading in Financial Markets
  • the Credit Crisis of 2007
  • Valuation and Scenario Analysis: The Risk-Neutral and Real Worlds
  • How Traders Manage Their Risks
  • Interest Rate Risk
  • Volatility
  • Correlations and Copulas
  • Value at Risk and Expected Shortfall
  • Historical Simulation and Extreme Value Theory
  • Model-Building Approach
  • Basel I, Basel II, and Solvency II
  • Basel II.5, Basel III, and Other Post-Crisis Changes
  • Fundamental Review of the Trading Book
  • Managing Credit Risk: Margin, OTC Markets, and CCPs
  • Estimating Default Probabilities
  • CVA and DVA
  • Credit Value at Risk
  • Scenario Analysis and Stress Testing
  • Operational Risk
  • Liquidity Risk
  • Model Risk
  • Economic Capital and Raroc
  • Enterprise Risk Management
  • Risk Management Mistakes to Avoid
  • Answers to Questions and Problems
  • DerivaGem Software
  • Table for N(x) Whenx ≤ 0
  • Table for N(x) Whenx ≥ 0