"The definitive guide to quantifying risk vs. return--fully updated to reveal the newest, most effective innovations in financial risk management since the 2008 financial crisisWritten for risk professionals and non-risk professionals alike, this easy-to-understand guide helps you meet the increasingly insistent demand to make sophisticated assessments of companies' risk exposure. It provides the latest methods for: Measuring and transferring credit risk Increasing risk-management transparency Implementing an organization-wide Enterprise risk Management (ERM) approach Michel Crouhy is head of research and development at NATIXIS and the founder and president of the NATIXIS Foundation for Quantitative Research. Dan Galai is the Abe Gray Professor of Finance and Business Administration at the School of Business Administration, the Hebrew University in Jerusalem. Robert Mark is the Founding Chief Executive Officer of Black Diamond Risk which provides corporate governance, risk management consulting, risk software tools, and transaction services."--

Foreword -- Foreword -- Introduction to the Second edition -- Reforming risk management for the post-crisis era -- Risk management: a helicopter view -- Corporate risk management: a primer -- Banks and their regulators: the post-crisis regulatory framework -- Corporate governance and risk management -- A user-friendly guide to the theory of risk and return -- Interest rate risk and hedging with derivative instruments -- Measuring market risk: value-at-risk, expected shortfall, and similar metrics -- Asset/liability management -- Credit scoring and retail credit risk management -- Commercial credit risk and the rating of individual credits -- Quantitative approaches to credit portfolio risk and credit modeling -- Credit transfer markets -- and their implications -- Counterparty credit risk: CVA, DVA, and FVA -- Operational risk -- Stress testing and scenario analysis -- Risk capital attribution and risk-adjusted performance measurement -- Epilogue: Trends in risk management -- Index