Book description
Managers can deploy and manage economic capital more effectively when they understand how their decisions add value to their organizations. Economic Capital: How It Works and What Every Manager Needs to Know presents new ways to define, measure, and implement management strategies by using recent examples, many from the sub-prime crisis. The authors also discuss the role of economic capital within the broader context of management responsibilities and activities as well as its relation to other risk management tools that are available to the modern risk manager.- Explains ways to use economic capital in balancing risk and return
- Evaluates solutions to problems encountered in establishing an economic capital framework
- Emphasizes intuition
- Draws special attention to embedding risk modelling approaches within economic capital frameworks
Table of contents
- Brief Table of Contents
- Table of Contents
- Copyright
- Acknowledgments
- Introduction
- BibliographyNotes
- Chapter 1. Measuring the Unexpected
- BibliographyEndnotes
- Chapter 2. Show Me the Money
- BibliographyEndnotes
- Chapter 3. You Manage What You Measure
- BibliographyEndnotes
- Chapter 4. Running the Numbers
- BibliographyEndnotes
- Chapter 5. Facing Reality
- BibliographyEndnotes
- Chapter 6. Team Play
- BibliographyEndnotes
-
Chapter 7. What Is Next? The Future of Economic Capital
- 7.1. Consider All the Institution's Capital Objectives
- 7.2. Address the Pro-cyclicality of Capital Requirements
- 7.3. Continuously Improve Risk Measurement
- 7.4. Explicitly Account for Model Risks
- 7.5. Create Risk-sensitive Incentives
- 7.6. Align Regulatory Capital Further to Economic Capital
- 7.7. The Promise of Economic Capital
- BibliographyEndnotes
Product information
- Title: Economic Capital
- Author(s):
- Release date: May 2009
- Publisher(s): Elsevier Science
- ISBN: 9780080956800
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