Description: This comprehensive yet accessible guide to enterprise risk management for financial institutions contains all the tools needed to build and maintain an ERM framework. It discusses the internal and external contexts within which risk management must be carried out, and it covers a range of qualitative and quantitative techniques that can be used to identify, model and measure risks. This third edition has been thoroughly revised and updated to reflect new regulations and legislation. It includes additional detail on machine learning, a new section on vine copulas, and significantly expanded information on sustainability. A range of new case studies include Theranos and FTX. Suitable as a course book or for self-study, this book forms part of the core reading for the Institute and Faculty of Actuaries' examination in enterprise risk management.
Brief description: Paul Sweeting is Honorary Professor of Actuarial Science and President of the Institute and Faculty of Actuaries. As well as having been a chief risk officer for one of the world's largest social insurance funds, he has worked in pensions, investment and life insurance. Paul is a fellow of the Institute and Faculty of Actuaries, of the Chartered Institute for Securities and Investment and of the Royal Statistical Society. He is also a Chartered Actuary, a CFA Charterholder and a Chartered Enterprise Risk Actuary.
Review Quotes: 'Paul Sweeting's book is an impressively comprehensive exploration of all aspects of enterprise-wide financial risk management and now with welcome updates for recent developments in AI, technology and risk management. It's a thorough examination of different risk management models with detailed consideration of different risks and their statistical analysis. The expansion of the section on case studies is particularly welcome, as it brings to life many of the theoretical concepts explored in this excellent book. Highly recommended for all those involved in risk management across financial institutions and an essential resource for anyone interested in financial risk management.' Charles Cowling, Past President, International Actuarial Association