Integrating Corporate Risk Management

Today, as capital and insurance markets converge, distinctions between securities, derivatives and insurance products are blurring. Insurance companies are offering innovative risk solutions that cover a broad range of risks—say property, foreign exchange and energy price risk—with a single integrated instrument. This excellent text, written by a group of professionals from Swiss Re, walks readers through the many innovations taking place.

Contents

The Foundations

1. Everyone Is a Risk Manager

2. The Conventional Approach to Risk Management

3. Integrating Risk Management and Capital Management

4. Risk Mapping

The Tools

5. Converging Markets and Integrated Solutions

6. Multi-Line and Multi-Trigger Products

7. Finite Risk Reinsurance

8. Run-Off Solutions

9. Contingent Capital

10. Insurance-Linked Securities

11. Weather Risk Management

The Future

12. Global Outlook

13. Prospects and Challenges

14. Migrating to the New Environment

Opening chapters describe finance theory, and how a firm's capital requirements are diminished if it can "rent" an  insurance company's balance sheet. These discussions are sophisticated, insightful and will get any business professional thinking. Later chapters cover the many insurance-related solutions that are available today. Some have been around for years, such as captive insurance. Others are more recent, such as:

  • insurance-linked securities;

  • multi-line and multi-trigger products;

  • contingent capital; and

  • weather risk management products.

Closing chapters consider prospects for the future.

I highly recommend this book. It is the best unified source on risk management solutions that bridge the capital and insurance markets.

See Also:

Culp, Christopher and Merton Miller (1999). Corporate Hedging in Theory and Practice is an edited collection on hedging and the Metallgesellschaft debacle.

Dischel, Robert S. (2002). Climate Risk and the Weather Market is the bible on weather derivatives.

Geman, Helyette (1999). Insurance and Weather Derivatives is an edited collection on insurance and weather derivatives markets and financial engineering.

Risk Books (1997). Financial Risk and the Corporate Treasury is an edited collection of papers on corporate risk management.
 

 

Ads by Contingency Analysis.

Advertise on this site.
 

disclaimer

website: http://www.contingencyanalysis.com
books direct link: http://www.riskbook.com
copyright © Contingency Analysis, 1996 - current