Value and Capital Management: A Handbook for the Finance and Risk Functions of Financial Institutions
- 14h 47m
- Thomas C. Wilson
- John Wiley & Sons (UK)
- 2015
A value management framework designed specifically for banking and insurance
The Value Management Handbook is a comprehensive, practical reference written specifically for bank and insurance valuation and value management. Spelling out how the finance and risk functions add value in their respective spheres, this book presents a framework for measuring – and more importantly, influencing – the value of the firm from the position of the CFO and CRO. Case studies illustrating value-enhancing initiatives are designed to help Heads of Strategy offer CEOs concrete ideas toward creating more value, and discussion of "hard" and "soft" skills put CFOs and CROs in a position to better influence strategy and operations. The challenge of financial services valuation is addressed in terms of the roles of risk and capital, and business-specific "value trees" demonstrate the source of successful value enhancement initiatives.
While most value management resources fail to adequately address the unique role of risk and capital in banks, insurance, and asset management, this book fills the gap by providing concrete, business-specific information that connects management actions and value creation, helping readers to:
- Measure value accurately for more productive value-based management initiatives and evaluation of growth opportunities
- Apply a quantitative, risk-adjusted value management framework reconciled with the way financial services shares are valued by the market
- Develop a value set specific to the industry to inspire initiatives that increase the firm's value
- Study the quantitative and qualitative management frameworks that move CFOs and CROs from measurement to management
The roles of CFO and CRO in financial firms have changed dramatically over the past decade, requiring business savvy and the ability to challenge the CEO. The Value Management Handbook provides the expert guidance that leads CFOs and CROs toward better information, better insight, and better decisions.
About the Author
THOMAS C. WILSON is the chief risk officer for Allianz Group, where he is responsible for global risk controlling and risk management policies and guidelines. He has spent nearly 30 years working in finance and risk for such companies as UBS, McKinsey & Company, Swiss Reinsurance, Oliver Wyman & Company, and ING.
In this Book
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List of Abbreviations
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Why is Value Management Important?
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How do CFOs and CROs Add Value?
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RAPMs – The Industry Standard
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Two Challenges in Using RAPMs
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Valuing Financial Services – The Theory
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Valuing Financial Services – The Evidence
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Market-Consistent Valuation for Insurers
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Property and Casualty Insurance
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Life and Health Insurance
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Banking
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Achieving Profitable Growth
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Achieving Operating Efficiency
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Corporate Strategy and Capital Allocation
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Strategic Planning and Performance Management
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Balance Sheet Management
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The Economics of Asset/Liability Management
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The Practical Aspects of Asset/Liability Management
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Cash and Liquidity Management
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Managing the Capital and Funding Structure
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Risk Management
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Risk Governance and Organization
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Risk Identification and Evaluation
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Risk Underwriting – Strategy and Governance
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Risk Underwriting – Technical Tools
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Risk Underwriting – From Technical Pricing to Value Maximization
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Managing Operational and Reputational Risks
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Risk and Limit Controlling
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Glossary
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References
