Book description
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.
Table of contents
- Cover
- Series Page
- Title Page
- Copyright
- Dedication
- List of Abbreviations
- Preface
- Acknowledgments
- About the Author
- Part One: Introduction
- Part Two: Better Information – Measuring Value
-
Part Three: Better Insights – Managing Value
- Chapter 8: Property and Casualty Insurance
- Chapter 9: Life and Health Insurance
- Chapter 10: Banking
-
Chapter 11: Achieving Profitable Growth
- Rules of the Game and KPIs
- Management Actions – Three Horizons of Growth
- Horizon 1 – Increasing Sales Productivity
- Horizon 1 – Going Multi-Channel
- Horizon 1 – Getting More out of Existing Customers; Cross Sell, Big Data and Customer Loyalty
- Horizon 1 – Managing the Customer Portfolio Skew
- Horizon 2 – Anticipating Mega-trends
- Horizon 2 – Exploiting Adjacencies
- Horizon 2 – Transformational and Bolt-On Acquisitions
- Horizon 3 – Creative Disruptions
-
Chapter 12: Achieving Operating Efficiency
- The Importance of Operating Efficiency
- Rules of the Game
- Pay Less: Optimize Procurement
- Pay less: From Business Process Redesign to Outsourcing
- Use Less, But More Effectively: Digitize and Automate
- Use Less, But More Effectively: Re-Engineer the Product Portfolio
- Case Example
- Use Less, But More Effectively: Managing Acquisition Expenses
-
Part Four: Better Decisions – Capital, Balance Sheet and Risk Management
- Chapter 13: Corporate Strategy and Capital Allocation
- Chapter 14: Strategic Planning and Performance Management
- Chapter 15: Balance Sheet Management
- Chapter 16: The Economics of Asset/Liability Management
- Chapter 17: The Practical Aspects of Asset/Liability Management
- Chapter 18: Cash and Liquidity Management
- Chapter 19: Managing the Capital and Funding Structure
- Chapter 20: Risk Management
- Chapter 21: Risk Governance and Organization
- Chapter 22: Risk Identification and Evaluation
- Chapter 23: Risk Underwriting – Strategy and Governance
- Chapter 24: Risk Underwriting – Technical Tools
- Chapter 25: Risk Underwriting – From Technical Pricing to Value Maximization
- Chapter 26: Managing Operational and Reputational Risks
- Chapter 27: Risk and Limit Controlling
- Appendix AMarket Multiple Approaches
- Appendix BDerivation of Steady-State Valuation Multiples
- Appendix CValuing Banks and Insurers: The Link Between Value and New Business and Investment RAPM
- Appendix DBeyond Debt and Equity
- Glossary
- References
- Index
- End User License Agreement
Product information
- Title: Value and Capital Management: A Handbook for the Finance and Risk Functions of Financial Institutions
- Author(s):
- Release date: August 2015
- Publisher(s): Wiley
- ISBN: 9781118774632
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