Best Textbooks about Financial Risk Management

By Chris Pentago posted 07-16-2013 08:29 AM


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.