Book: Enterprise Risk Management: From Incentives to Controls
Author: James Lam
ISBN: 978-1-118-41361-6
Chapter 22 is about the board of directors. After the 2008 financial crisis, boards stopped treating risk as an afterthought. Risk management replaced accounting as the top board concern in a 2010 Eisner LLP survey of 100+ directors.
Book: Fixed Income Securities: Tools for Today’s Markets | Author: Bruce Tuckman & Angel Serrat | ISBN: 978-0-470-89169-8
Previous: TED Spreads and Financial Stress (Chapter 15, Part 2) | Next: Arbitrage and Two-Curve Discounting (Chapter 17)
Book: Enterprise Risk Management: From Incentives to Controls
Author: James Lam
ISBN: 978-1-118-41361-6
GE Capital’s Gary Wendt put it bluntly: get risk wrong and nothing else matters. Financial institutions manage other people’s money. Trust is the business. Expected losses are a normal cost line, which is why annual reports brag about risk committees and limits.
Book: Financial Stability: Fraud, Confidence and the Wealth of Nations by Frederick L. Feldkamp and R. Christopher Whalen
ISBN: 978-1-118-93579-8
Book: Financial Markets and Institutions, 11th Edition Author: Jeff Madura Publisher: Cengage Learning, 2015 ISBN: 978-1-133-94788-2
Chapter 18 is all about the rules banks have to follow. The short version: banks hold other people’s money, so governments regulate them to prevent disasters. The longer version involves a complex web of federal and state agencies, capital requirements, and lessons learned from every financial crisis.