The ART of Risk Management
Alternative Risk Transfer, Capital Structure, and the Convergence of Insurance and Capital Markets
Published on 12. April 2002
Book
Hardback
XVIII, 574 pages
978-0-471-12495-5 (ISBN)
Description
Learn about today's hottest new risk management tools
One of the hottest areas of finance today, alternative risk transfer, or ART, refers to the use of various insurance products to manage market, credit, operational, legal, environmental, and other forms of risk. As the capital and insurance markets continue to converge, the number and complexity of new risk-defraying insurance products available to corporations, brokerages, money managers and other financial professionals will continue to grow. Expert Christopher L. Culp uses case studies of recent ART transactions used by risk managers to put the field into perspective for financial professionals and to acquaint them with the various types of risk control products now available. In addition he explores, in-depth, the links between ART, derivatives and bank-arranged risk financing, and he explains the key differences between classic insurance products and financial guarantees, risk financing, bundled layering, and other ART forms.
Dieses Buch behandelt eines der aktuell heiss diskutierten Tools im Risikomanagement - den Alternativen Risiko Transfer, auch ART genannt. ART wird bei verschiedenen Versicherungsprodukten zur Risikosteuerung eingesetzt, z.B. des Markt- und Kreditrisikos, des operativen - und rechtlichen Risikos sowie einer Reihe anderer Risiken. Das zunehmende Zusammenwachsen von Versicherung und Kapitalmarkt generiert ein enormes Potential für Risk Manager bei der Gesamtrisikosteuerung des Unternehmens. Die Anzahl und Komplexität neuer Bank- und Versicherungsprodukte, auf die Unternehmen, Maklerfirmen, Geldmanager und andere Finanzexperten zur Risikosteuerung zurückgreifen können, wächst stetig. Autor Christopher Culp, ein erfahrener Experte auf diesem Gebiet, erläutert hier anhand von Fallstudien aktuelle ART-Transaktionen, wie sie von Risk Managern angewendet werden und macht Finanzexperten mit den verschiedenen Produkten zur Risikosteuerung und -finanzierung vertraut. Darüber hinaus analysiert er detailliert die Verbindungen zwischen ART, Derivaten und der Risikofinanzierung durch Banken und erklärt die wesentlichen Unterschiede zwischen klassischen Versicherungsprodukten und Kreditrückzahlungsgarantien, Risikofinanzierung und anderen ART-Formen. "The ART of Risk Management" vermittelt die aktuellsten und innovativsten Möglichkeiten im Bereich Risikomanagement.
One of the hottest areas of finance today, alternative risk transfer, or ART, refers to the use of various insurance products to manage market, credit, operational, legal, environmental, and other forms of risk. As the capital and insurance markets continue to converge, the number and complexity of new risk-defraying insurance products available to corporations, brokerages, money managers and other financial professionals will continue to grow. Expert Christopher L. Culp uses case studies of recent ART transactions used by risk managers to put the field into perspective for financial professionals and to acquaint them with the various types of risk control products now available. In addition he explores, in-depth, the links between ART, derivatives and bank-arranged risk financing, and he explains the key differences between classic insurance products and financial guarantees, risk financing, bundled layering, and other ART forms.
Dieses Buch behandelt eines der aktuell heiss diskutierten Tools im Risikomanagement - den Alternativen Risiko Transfer, auch ART genannt. ART wird bei verschiedenen Versicherungsprodukten zur Risikosteuerung eingesetzt, z.B. des Markt- und Kreditrisikos, des operativen - und rechtlichen Risikos sowie einer Reihe anderer Risiken. Das zunehmende Zusammenwachsen von Versicherung und Kapitalmarkt generiert ein enormes Potential für Risk Manager bei der Gesamtrisikosteuerung des Unternehmens. Die Anzahl und Komplexität neuer Bank- und Versicherungsprodukte, auf die Unternehmen, Maklerfirmen, Geldmanager und andere Finanzexperten zur Risikosteuerung zurückgreifen können, wächst stetig. Autor Christopher Culp, ein erfahrener Experte auf diesem Gebiet, erläutert hier anhand von Fallstudien aktuelle ART-Transaktionen, wie sie von Risk Managern angewendet werden und macht Finanzexperten mit den verschiedenen Produkten zur Risikosteuerung und -finanzierung vertraut. Darüber hinaus analysiert er detailliert die Verbindungen zwischen ART, Derivaten und der Risikofinanzierung durch Banken und erklärt die wesentlichen Unterschiede zwischen klassischen Versicherungsprodukten und Kreditrückzahlungsgarantien, Risikofinanzierung und anderen ART-Formen. "The ART of Risk Management" vermittelt die aktuellsten und innovativsten Möglichkeiten im Bereich Risikomanagement.
More details
Series
Edition
1. Auflage
Language
English
Place of publication
New York
United States
Target group
College/higher education
Professional and scholarly
Illustrations
Charts: 130 B&W, 0 Color; Tables: 33 B&W, 0 Color
Dimensions
Height: 23.6 cm
Width: 15.5 cm
Thickness: 3.6 cm
Weight
986 gr
ISBN-13
978-0-471-12495-5 (9780471124955)
Schweitzer Classification
Other editions
Additional editions
Christopher L. Culp
The ART of Risk Management
Alternative Risk Transfer, Capital Structure, and the Convergence of Insurance and Capital Markets
E-Book
07/2002
Wiley
€78.99
Available for download
Person
CHRISTOPHER L. CULP is the Managing Director of CP Risk Management LLC and an Adjunct Associate Professor of Finance at the Graduate School of Business of the University of Chicago. Formerly President of Risk Management Consulting Services, Inc., and Senior Examiner in the Supervision and Regulation Department of the Federal Reserve Bank of Chicago, Dr. Culp is also Senior Fellow in Financial Regulation with the Competitive Enterprise Institute in Washington, D.C., and a recent Visiting Lecturer in Risk and Insurance at the Institut für Finanzmanagement, Universität Bern, Switzerland. He is the author of The Risk Management Process: Business Strategy and Tactics and coeditor, along with Merton H. Miller, of Corporate Hedging in Theory and Practice: Lessons from Metallgesellschaft. Culp holds a PhD in finance from the Graduate School of Business of the University of Chicago and a BA in economics from the Johns Hopkins University.
Content
ACKNOWLEDGMENTS.
PREFACE: COMPREHENSIVE APPROACH TO CORPORATION FINANCE.
PART I: THE QUEST FOR OPTIMAL CAPITAL STRUCTURE.
CHAPTER 1: The Nature of Financial Capital.
Appendix 1-1: A Brief Introduction to Capital Theory.
Appendix 1-2: A Review of Basic Option Concepts.
CHAPTER 2: A Securities Perspective on Capital Structure.
CHAPTER 3: When Is Capital Structure Irrelevant?
CHAPTER 4: Benefits and Costs of Debt and the "Trade-off Theory" of Optimal Capital Structure.
CHAPTER 5: Asymmetric Information, Adverse Selection, and the "Pecking Order Theory" of Optimal Capital Structure.
CHAPTER 6: Distinguishing between Capital Structure Theories.
CHAPTER 7: Risk and Signaling Capital.
CHAPTER 8: Regulatory Capital.
PART II: CAPITAL STRUCTURE AND RISK MANAGEMENT.
CHAPTER 9: A Vocabulary of Risk.
CHAPTER 10: Risk Management as a Process.
CHAPTER 11: Risk Management and Capital Structure.
PART III: CLASSICAL RISK TRANSFORMATION PRODUCTS.
CHAPTER 12: Commercial Banking Products.
CHAPTER 13: Derivatives.
CHAPTER 14: Asset Disposition and Securitized Products.
CHAPTER 15: Insurance.
CHAPTER 16: Reinsurance.
PART IV: ALTERNATIVE RISK TRANSFER PRODUCTS.
CHAPTER 17: Alternative Risk Finance vs. Alternative Risk Transfer.
CHAPTER 18: Alternative Risk Finance: Self-Insurance, Captives, and Captivelike Structures.
CHAPTER 19: Alternative Risk Finance: Finite Risk Products and Solutions.
CHAPTER 20: Integrated Multiline and Multitrigger Alternative Risk Transfer Products.
CHAPTER 21: Committed Capital and Guarantees.
CHAPTER 22: Alternative Risk Securitizations and Securitized Products.
PART V: PRACTICAL CONSIDERATIONS FOR WOULD-BE ARTISTS.
CHAPTER 23: USAA Prime: Choice Cats for Diversifying Investors (Morton N. Lane).
CHAPTER 24: Emerging Role of Patent Law in Risk Finance (J. B. Heaton).
CHAPTER 25: Weather Derivatives or Insurance? Considerations for Energy Companies (Andrea S. Kramer).
CHAPTER 26: Convergence of Insurance and Investment Banking: Representations and Warranties Insurance and Other Insurance Products Designed to Facilitate Corporate Transactions (Theodore A. Boundas and Teri Lee Ferro).
BIBLIOGRAPHY.
INDEX.
PREFACE: COMPREHENSIVE APPROACH TO CORPORATION FINANCE.
PART I: THE QUEST FOR OPTIMAL CAPITAL STRUCTURE.
CHAPTER 1: The Nature of Financial Capital.
Appendix 1-1: A Brief Introduction to Capital Theory.
Appendix 1-2: A Review of Basic Option Concepts.
CHAPTER 2: A Securities Perspective on Capital Structure.
CHAPTER 3: When Is Capital Structure Irrelevant?
CHAPTER 4: Benefits and Costs of Debt and the "Trade-off Theory" of Optimal Capital Structure.
CHAPTER 5: Asymmetric Information, Adverse Selection, and the "Pecking Order Theory" of Optimal Capital Structure.
CHAPTER 6: Distinguishing between Capital Structure Theories.
CHAPTER 7: Risk and Signaling Capital.
CHAPTER 8: Regulatory Capital.
PART II: CAPITAL STRUCTURE AND RISK MANAGEMENT.
CHAPTER 9: A Vocabulary of Risk.
CHAPTER 10: Risk Management as a Process.
CHAPTER 11: Risk Management and Capital Structure.
PART III: CLASSICAL RISK TRANSFORMATION PRODUCTS.
CHAPTER 12: Commercial Banking Products.
CHAPTER 13: Derivatives.
CHAPTER 14: Asset Disposition and Securitized Products.
CHAPTER 15: Insurance.
CHAPTER 16: Reinsurance.
PART IV: ALTERNATIVE RISK TRANSFER PRODUCTS.
CHAPTER 17: Alternative Risk Finance vs. Alternative Risk Transfer.
CHAPTER 18: Alternative Risk Finance: Self-Insurance, Captives, and Captivelike Structures.
CHAPTER 19: Alternative Risk Finance: Finite Risk Products and Solutions.
CHAPTER 20: Integrated Multiline and Multitrigger Alternative Risk Transfer Products.
CHAPTER 21: Committed Capital and Guarantees.
CHAPTER 22: Alternative Risk Securitizations and Securitized Products.
PART V: PRACTICAL CONSIDERATIONS FOR WOULD-BE ARTISTS.
CHAPTER 23: USAA Prime: Choice Cats for Diversifying Investors (Morton N. Lane).
CHAPTER 24: Emerging Role of Patent Law in Risk Finance (J. B. Heaton).
CHAPTER 25: Weather Derivatives or Insurance? Considerations for Energy Companies (Andrea S. Kramer).
CHAPTER 26: Convergence of Insurance and Investment Banking: Representations and Warranties Insurance and Other Insurance Products Designed to Facilitate Corporate Transactions (Theodore A. Boundas and Teri Lee Ferro).
BIBLIOGRAPHY.
INDEX.