Anthony Tarantino, Deborah Cernauskas. Risk Management in Finance

Wiley, 2009, 360 pp.

Contents.
Preface xv.
Acknowledgments xix.
About the Contributors xxi.
Chapter.
introduction.
Organization of This Book.
Why Read This Book?
Note.
Chapter.
Data Goveance in Financial Risk Management.
introduction.
Data Goveance Center of Excellence.
Data Goveance Assessment.
Data Goveance Maturity Model.
Best Practices in Data Goveance.
Conclusion: next-Generation Techniques to Reduce Data.
Goveance Risk.
Notes.
Chapter.
information Risk and Data Quality Management.
introduction.
Organizational Risk, Business impacts, and Data Quality.
Examples.
Data Quality Expectations.
Mapping Business Policies to Data Rules.
Data Quality inspection, Control, and Oversight: Operational.
Data Goveance.
Managing information Risk via a Data Quality Scorecard.
Summary.
Notes.
viiviii Contents.
Chapter.
Total Quality Management using Lean Six Sigma.
introduction.
Performance Targets.
Process for Excellence.
Process improvement.
Summary.
Chapter.
Reducing Risk to Financial Operations through information Technology.
and infrastructure Risk Management.
introduction.
The Problem.
Risk Source and Root Cause.
Risk Management.
Closing Comments.
Global it standards Matrix.
Links to it risk Associations and Agencies.
Chapter.
An Operational Risk Management Framework for All Organizations.
introduction.
Definition and Categorization of Operational Risk.
How Auditors and Regulators Approach Risk Management.
How Rating Agencies Evaluate Operational Risk.
An Operational Risk Framework for All Organizations.
Conclusion.
Chapter.
Financial Risk Management in Asia.
introduction.
Risks in Asian Supply Chains.
Risks in Asian Financial Markets.
Conclusion.
Notes.
Chapter.
Doing Business in Latin America: Lessons Leaed and Best Practices.
for the Protection of Foreign investors.
introduction.
The World Bank indicators.
Protection of Debt investors.
Protection of Minority Owners.
Conclusion.
Chapter.
Mitigating Risk Exposure in Transitioning to the ifrs.
introduction.
Revenue Recognition Risks (ias 18).
Contents ix.
Derivatives (ias 39) and Hedging Risks.
Share-Based Compensation and Pension Risks.
Nonfinancial Asset Risks.
Off-Balance-Sheet Risks (Financial Assets).
Tax Liability Risks.
Other Liability Risks.
Financial Liabilities and Equity Risks.
Business Combination Risks (Mergers and Acquisitions).
Financial Services Industry Risks.
Conclusion: Suggestions to Reduce the Conversion Risks.
Notes.
Chapter.
Quantitative Operational Risk Management Methods.
Introduction.
Operational Risk Overview.
Quantitative Methods.
Modeling Approach Operational Risk.
Operational Value at Risk.
Multifactor Causal Models.
Regime Switching Models.
Discriminant Analysis.
Bayesian networks.
Process Approach to Operational Risk.
Business Process Modeling and Simulation.
Precursor Analysis in Operational Risk Management.
Agent-Based Modeling.
Six Sigma Approach to Quality and Process Control: Failure.
Modes and Effects Analysis.
Conclusion.
Bibliography.
Notes.
Chapter.
Statistical Process Control Integrated with Engineering Process Control.
Introduction.
Control Schemes.
Statistical Process Control.
Engineering Process Control Systems.
Finance Example.
Conclusion.
Bibliography.
Notes.
Chapter.
Business Process Management and Lean Six Sigma.
A next-Generation Technique to Improve Financial Risk Management.
Background.
Historical Perspective.
x Contents.
Bpm in Financial Services—Functionality to Look For.
Survey of Cross Industry Deployments of Bpm Solutions.
Benefits of Bpm over Traditional Process Development.
Pulte Mortgage Case Study.
Ameriprise Financial Case Study.
Lean Six Sigma’s Sipoc approach to Bpm.
Conclusion.
Notes.
Chapter.
Bayesian networks for Root Cause Analysis.
Introduction: Risk Quantification in Finance.
Causal knowledge Discovery.
Bayesian Networks.
Conclusion.
Bibliography.
Chapter.
Analytics: Secrets to Deriving Business Value and Insights.
out of Information.
Abstract.
Introduction.
Information Technology and Service Evolution.
Information Analytics Technology Landscape.
Future Analytics Technologies.
Conclusion.
Notes.
Chapter.
Embedded Predictive Analytics: Transforming Risk Management from.
Review Function to Competitive Advantage.
Introduction.
Execution Risk in the Financial Services Industry.
Business Processes.
Predictive Analytics: Technology-Enabled Analytic Methods.
Conclusion: Managing Risk Competitively.
Chapter.
Reducing the Financial Risks in Litigation and Legal Discovery.
Background.
The Sedona Conference and the New Rules of Civil Procedure.
u.S. Court Rulings under the New Frcp.
u.S. Rulings Impacting Businesses Outside the united States.
Best Practices and Next-Generation Techniques.
Conclusion.
Notes.
xii Contents.
Conclusion.
Notes.
Chapter.
Throughput Accounting.
Background.
The Five Focusing Steps.
Throughput Accounting.
Elements of Throughput Accounting.
Evaluating Financial Decisions.
Role of a Constraint.
Applying T, I, and Oe to Traditional Business Measures.
Product Cost—Throughput Accounting versus Cost Accounting.
Analyzing Products Based on Throughput per Constraint unit.
How Can a Company Increase T/Cu?
key Decisions Areas to Apply Throughput Accounting.
Summary.
Appendix: Common Questions and Answers.
Notes.
Chapter.
Environmental Consistency Confidence: Scientific Method in Financial.
Risk Management.
Introduction.
Paradigms Applied—Values, Control, Reengineering, and Costing.
Environmental Consistency Confidence—Statistical Head,
Cultural Heart.
What Is a key Risk Indicator (kri)?
Case Study: Global Commodities Firm.
Predictive key Risk Indicators for Losses and Incidents.
(Pkri LI) Issues.
Case Study: European Investment Bank.
What Is Current Practice?
Bigger Canvases for Scientific Management.
Conclusion.
Bibliography.
Notes.
Chapter.
Quality in the Front Office: Reducing Process Variation.
in Trading Firms.
Introduction.
Development Methodology for Quantitatively Driven Projects.
in Finance.
Waterfall Process for Continuous Improvement (Kaizen).
Conclusion.
Notes.
Contents xiii.
Chapter.
The Root Cause of the Global Financial Crisis and Corporate Board.
Reforms to Prevent Future Failures in Risk Management.
Introduction.
Background to the Global Financial Crisis of 2007–.
Why This Crisis Deserves Close Scrutiny.
The Root Cause of Catastrophic Failure in Financial Risk.
Management.
How to Prevent Future Failures in Financial Risk Management.
Conclusion.
Notes.
Index.