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This book provides a comprehensive overview of economic capital, a critical concept in financial risk management. It explains how economic capital is used to measure and manage risk, ensuring that financial institutions maintain adequate capital buffers to absorb potential losses. The authors discuss various methodologies for calculating economic capital, its application in decision-making processes, and its role in aligning risk-taking with organizational objectives. Through practical examples and case studies, the book illustrates how managers can effectively implement economic capital frameworks to enhance financial stability and performance.
Sub Title: How It Works, and What Every Manager Needs to Know
Edition:
Volume:
Publisher: Elsevier
Publishing Year: 2009
ISBN: 978‑0‑08‑095680‑0
Pages: 304