Value and Capital Management: A Handbook for the Finance and Risk Functions of Financial Institutions

“Over the past 20 years, Tom Wilson has been a highly visible risk management practitioner in major financial services firms – both banks and insurance companies – as well as in leading advisory firms. The discussion of value management in banking and insurance in a single volume highlights that one of the major roles of financial services firms is risk-taking, risk transformation and risk management. Tom’s unique experience in both sectors has allowed him to produce a most welcome integrated handbook.

The clear exposition that risk-taking and strategic management in banking and insurance must be integrated in a value creation framework provides invaluable tools to address managerial issues such as risk identification, capital allocation, measurement of performance and risk governance. The sharing of Tom Wilson’s vast experience is a gift to the profession.”

Jean Dermine, Professor of Banking and Finance, Insead, author of Bank Valuation and Value Based Management

“Much has been written on value and capital management, also for the financial services industry. But this handbook is truly different in a number of ways.

First, it provides a solid conceptual basis to understand true value creation in banking and insurance. This may seem academic, but is indeed highly relevant in practice. As a long-standing practitioner in both industries, I have seen numerous situations where profit generation has been mistaken for value creation, often leading to the wrong decisions. This book ...