Value and Capital Management: A Handbook for the Finance and Risk Functions of Financial Institutions Hardcover - 2015

From the jacket flap

Value and Capital Management shows CFOs and CROs at banks and insurance companies how to add value to their organizations through better information, better insight, and better decisions.

This cutting-edge guide empowers the newly evolved roles of today's financial and risk officers in financial services firms by providing them with a savvy framework for linking management actions to shareholder value creation. In connecting theory to practice, the book very clearly spells out how the finance and riskfunctions add value in their respective spheres of influence. The book includes concrete ideas for increasing their value add within the context of the individual business, as well as the corporate portfolio. Insightful "value trees" tailored to banking and insurance give CFOs and CROs an advantage when challenging CEOs and allow CEOs to understand their businesses through a "finance and risk lens", illuminating the role of risk and capital in delivering sustainable operating profits and growth. Practical balance sheet and capital management frameworks, including the Capital Budget, reinforce corporate strategy by determining which businesses to grow, which to harvest and which to fix or exit. Master the complexities of risk and capital in your firm's value by:

• Applying a quantitative, risk-adjusted value management framework reconciled with the way financial services shares are valued by the market to optimize business strategy and the corporate portfolio
• Identifying segment specific capabilities and "rules of the game" that increase the firm's value
• Developing the capital allocation, balance sheet management and risk management capabilities needed to execute the strategies and move CFOs and CROs from measurement to management

Generating shareholder returns and satisfying customers by assuming risk is part science and part art, which is why banking and insurance executives need the holistic guidance written just for them in Value and Capital Management.