Managing Risks in Commercial and Retail Banking

03/12/2013 · No Responses

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
Part I: 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

Part II: 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
Chapter 14. Credit Portfolio Review Methodology
Chapter 15. Risk-Based Loan Pricing

Part III: Market Risk Management
Chapter 16. Market Risk Framework
Chapter 17. Liquidity Risk Management
Chapter 18. Interest Rate Risk Management
Chapter 19. Foreign Exchange Risk Management
Chapter 20. Equity Exposure Risk Management
Chapter 21. Asset Liability Management Review Process

Part IV: Operational Risk Management
Chapter 22. Operational Risk Management Framework
Chapter 23. Operational Risk Identification, Measurement, and Control

Part V: Risk-Based Internal Audit
Chapter 24. Risk-Based Internal Audit—Scope, Rationale, and Function
Chapter 25. Risk-Based Internal Audit Methodology and Procedure

Part VI: Corporate Governance
Chapter 26. Corporate Governance

Part VII: Lessons from the Asian and the United States’ Financial Crises
Chapter 27. The Causes and Impact of the Asian and the United States’ Financial Crises