Book description
A practical guide to the practices and procedures of effectively managing banking risks
Managing Risks in Commercial and Retail Banking takes an in-depth, logical look at dealing with all aspects of risk management within the banking sector. It presents complex processes in a simplified way by providing real-life situations and examples.
The book examines all dimensions of the risks that banks face—both the financial risks—credit, market, and operational—and the non-financial risks—money laundering, information technology, business strategy, legal, and reputational. Focusing on methods and models for identifying, measuring, monitoring, and controlling risks, it provides practical advice backed up by solid theories, without resorting to the use of complicated mathematical and statistical formulas.
Author Amalendu Ghosh exposes topics that are usually absent in books on managing banking risk—such as design of control framework, risk management architecture, credit risk rating, risk-based loan pricing, portfolio analysis, business continuity planning, and corporate governance.
Author has extensive experience with a variety of major banks and institutions worldwide and brings a fresh perspective in the wake of the global finance crisis
Presents a novel approach using models of the credit risk rating of different types of borrowers, the methodology for assigning weights for deriving the rating, and the scoring process
Covers the essentials of corporate governance and options for credit risk assessment in line with the recommendations made in the New Basel Capital Accord
Explains the methodology of risk-based internal audit, including techniques to enable bank branches to switch over from the old transaction-based audit methods
With its logical sequence of the aspects of risk management, the book's layout is ideal for presentations, making it a handy tool for risk management training
Table of contents
- Cover
- Series
- Title Page
- Copyright
- Preface
-
PART One: Risk Management Approaches and Systems
- CHAPTER 1: Business Risk in Banking
- CHAPTER 2: Control Risk in Banking
- CHAPTER 3: Technology Risk in Banking
- CHAPTER 4: Fundamentals of Risk Management
-
CHAPTER 5: Risk Management Systems and Processes
- 5.1 RISK MANAGEMENT POLICY
- 5.2 RISK APPETITE
- 5.3 RISK LIMITS
- 5.4 RISK MANAGEMENT SYSTEMS
- 5.5 MANAGEMENT INFORMATION SYSTEM
- 5.6 VERIFICATION OF RISK ASSESSMENT
- 5.7 HUMAN RESOURCE DEVELOPMENT
- 5.8 TOP MANAGEMENT COMMITMENT
- 5.9 CAPITAL ADEQUACY ASSESSMENT AND DISCLOSURE REQUIREMENT
- 5.10 RISK PRIORITIZATION
- 5.11 SUMMARY
-
PART Two: Credit Risk Management
- CHAPTER 6: Credit Problems and Credit Risk
- CHAPTER 7: Identification of Credit Risk
- CHAPTER 8: Credit Risk Rating Concept and Uses
- CHAPTER 9: Credit Risk Rating Issues
- CHAPTER 10: Credit Risk Rating Models
- CHAPTER 11: Credit Risk Rating Methodology
- CHAPTER 12: Credit Risk Measurement Model
-
CHAPTER 13: Credit Risk Management
- 13.1 GENERAL ASPECTS
- 13.2 CREDIT MANAGEMENT AND CREDIT RISK MANAGEMENT
- 13.3 CREDIT RISK MANAGEMENT APPROACH
- 13.4 CREDIT RISK MANAGEMENT PRINCIPLES
- 13.5 ORGANIZATIONAL STRUCTURE FOR CREDIT RISK MANAGEMENT
- 13.6 CREDIT RISK APPETITE
- 13.7 CREDIT RISK POLICIES AND STRATEGIES
- 13.8 EARLY WARNING SIGNAL INDICATORS
- 13.9 CREDIT AUDIT MECHANISM
- 13.10 CREDIT RISK MITIGATION TECHNIQUES
- 13.11 SUMMARY
- CHAPTER 14: Credit Portfolio Review Methodology
- CHAPTER 15: Risk-Based Loan Pricing
-
PART Three: Market Risk Management
- CHAPTER 16: Market Risk Framework
-
CHAPTER 17: Liquidity Risk Management
- 17.1 LIQUIDITY RISK CAUSES
- 17.2 LIQUIDITY RISK MANAGEMENT ACTIVITIES
- 17.3 LIQUIDITY RISK MANAGEMENT POLICIES AND STRATEGIES
- 17.4 LIQUIDITY RISK IDENTIFICATION
- 17.5 LIQUIDITY RISK MEASUREMENT
- 17.6 LIQUIDITY MANAGEMENT STRUCTURE AND APPROACHES
- 17.7 LIQUIDITY MANAGEMENT UNDER ALTERNATE SCENARIOS
- 17.8 LIQUIDITY CONTINGENCY PLANNING
- 17.9 STRESS TESTING OF LIQUIDITY FUNDING RISK
- 17.10 LIQUIDITY RISK MONITORING AND CONTROL
- 17.11 SUMMARY
-
CHAPTER 18: Interest Rate Risk Management
- 18.1 INTEREST RATE RISK IN TRADING AND BANKING BOOKS
- 18.2 INTEREST RATE RISK CAUSES
- 18.3 INTEREST RATE RISK MEASUREMENT
- 18.4 MATURITY GAP ANALYSIS
- 18.5 DURATION GAP ANALYSIS
- 18.6 SIMULATION ANALYSIS
- 18.7 VALUE-AT-RISK
- 18.8 EARNINGS AT RISK
- 18.9 INTEREST RATE RISK MANAGEMENT
- 18.10 INTEREST INCOME STRESS TESTING
- 18.11 INTEREST RATE RISK CONTROL
- 18.12 SUMMARY
- CHAPTER 19: Foreign Exchange Risk Management
- CHAPTER 20: Equity Exposure Risk Management
- CHAPTER 21: Asset Liability Management Review Process
-
PART Four: Operational Risk Management
- CHAPTER 22: Operational Risk Management Framework
-
CHAPTER 23: Operational Risk Identification, Measurement, and Control
- 23.1 OPERATIONAL RISK IDENTIFICATION APPROACH
- 23.2 OPERATIONAL RISK IDENTIFICATION PROCESS
- 23.3 BUSINESS LINE IDENTIFICATION
- 23.4 OPERATIONAL RISK ASSESSMENT METHODS
- 23.5 OPERATIONAL RISK MEASUREMENT METHODOLOGY
- 23.6 OPERATIONAL RISK MEASUREMENT PROCESS
- 23.7 OPERATIONAL RISK MONITORING
- 23.8 OPERATIONAL RISK CONTROL AND MITIGATION
- 23.9 HIGH-INTENSITY OPERATIONAL RISK EVENTS—BUSINESS CONTINUITY PLANNING
- 23.10 BUSINESS CONTINUITY PLAN SUPPORT REQUIREMENTS
- 23.11 BUSINESS CONTINUITY PLANNING METHODOLOGY
- 23.12 OPERATIONAL RISK MANAGEMENT ORGANIZATIONAL STRUCTURE
- 23.13 SUMMARY
- PART Five: Risk-Based Internal Audit
- PART Six: Corporate Governance
- PART Seven: Lessons from the Asian and the United States' Financial Crises
- About the Author
- Index
Product information
- Title: Managing Risks in Commercial and Retail Banking
- Author(s):
- Release date: February 2012
- Publisher(s): Wiley
- ISBN: 9781118103531
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