MANAGING BANKING RISKS
E Cade, formerly Barclays
Bank
Published in association with
The Chartered Institute of Bankers
This book fills a gap in
banking literature by providing a professional and sophisticated 'risk' primer for bank
directors, executives and staff at every level as well as students, analysts and
commentators on the banking scene. The breadth of focus is exceptional in covering the
full range of banking risks, rather than the customary specialist segment.
The book begins by defining
risk itself and discussing how it can be approached in a banking context. It goes on to
examine the concepts of volatility, expected and unexpected loss, the role of risk
capital, rate of return and the required reward for risk (the 'cost of capital').
The author identifies five
generic types of primary banking risk and one universal secondary type. Each of these is
explored in turn from solvency and liquidity risks to credit risk, interest rate risk,
price risks and operating risks. This treatment gives the reader an insight into modern
risk management and hedging techniques, and many other relevant topics
Legal and regulatory issues
and constraints are considered within an international frame of reference. The book offers
practical guidance on the role of a bank's board and executive management, organisation
and co-ordination of risk management
256 pages