Risk
management is an essential factor within a variety of fields, and is
particularly important for modern financial institutions that play
for high stakes, so to speak. As witnessed by the latest global
economic crisis, there are plenty of people out there with a poor
grasp on the subject and all the intricacies involved, so it is best
to learn from our own mistakes and study the wealth of literary
knowledge that is widely available to us. A young student or even a
streetwise entrepreneur would be well advised to find plenty of
information on financial risk management, and there is no better way
to do that than buckling down and doing some serious reading. Here
are several good textbooks on the subject that you should definitely
have in your library.
Introduction
to Derivatives & Risk Management
Thisbook by Don M. Chance and Robert Brooks will give you an insight into
financial derivatives and how they can be used to manage the risk
inherent in financial decision-making. The book covers everything
from the structure of option markets, option pricing models and
option strategies to techniques and applications of financial risk
management with a good amount of both theory and practical examples.
Risk
Management and Financial Institutions
The
book was written by renowned author and the professor of Derivatives and Risk Management, John C. Hull, and should serve as the go-to book
for anyone in interested in pursuing a career in the field of
finance. In the book, professor Hull explains the inner workings of
financial institutions and gives the reader a deeper understanding of
the potential pitfalls on the financial market. It covers a range of
financial risks and the means of managing them effectively.
Financial
Institutions Management a Risk Management Approach
Authors
Antony Saunders and Marcia Cornett bring us this comprehensive book
that helps us better understand the growing similarities in the types
of risk and the risk management techniques of different financial
institutions. The book is broken up into three parts –
introduction, measuring risk and managing risk – each of them
providing plenty of detailed information that the reader can absorb
quickly.
Mathematics
and Statistics for Financial Risk Management
In
this book Michael B. Miller carefully and methodically goes over the
different mathematical and statistical aspects of financial risk
management. The author is very precise and dispenses with overly
complicated jargon and elevated style that we so often find in such
books in order to make the information more accessible to the reader.
This book provides you with all the mathematical knowledge - all the
concepts, models and formulas – that you will need to understand
the science behind financial risk management.
These
are some of the best textbooks available on the subject of risk
management with regard to finance, and should form the basis for your
studies in the field, although you will likely be coming back to them
every so often to check a few facts or refresh your memory. They
should find their way into the library of any serious student of
management and finance.