Integrating Market, Credit and Operational Risk - A Complete Guide for Bankers and Risk Professionals (Hardcover)

Covering the three major sources of risk, this book gives an overview of the exact methodological steps needed to evaluate and manage market, credit and operational risks arising from banking activities. It reveals the strengths and weaknesses of Basel II and explains ways to integrate these sources of financial risk into this regulatory framework. Among other topics, the focus of the book lies on the construction of a common, reliable and historically based framework for conducting stress tests for the entire banking organization structure. This will ultimately allow the reader to develop a common integrated framework for the quantification of economic capital and regulatory capital for each source of risk under consideration. "Integrating Market, Credit and Operational Risk" will: identify and measure the risks on an integrated basis; model and map the integrated risk that is associated to both your internal and external market, credit and operational business lines; align the integrated risks to business objectives through the associated business lines performances; evaluate and monitor the probability and impact of each integrated risk based on multi-factorial and multi-dimensional measurements within operations that have high degree of complexity; and manage the integrated risk in accordance to minimise the overall value of risks as well as their capital requirements. It will allocate the resources needed for the integrated risk management within different business lines, department sites etc.; deal with the implementation of Basel II for integrated risk assessment; acquire alternative proposals for market, credit and operational risks; learn all financial and business aspects of the integration among market, credit and operational risks in credit institutions; identify, model, map and monitor the integrated risks and/or losses; understand what to consider on VaR for unitary as well as integrated risk level; and know when and where the different sources of risks are integrated. This book presents a unique way for you to evaluate integrated risks within complex operational processes and can be used as a working manual, handbook or reference for anyone working in or studying these sources of risk.