Risk Management in Financial Institutions
Description
This book offers a comprehensive and accessible introduction to risk management in financial institutions, with a strong focus on contemporary challenges such as market volatility, liquidity pressures, and financial technology. By integrating traditional banking risks with emerging challenges, the book supports both students and professionals seeking accessible insights into banking risk, regulation, and modern financial practice.
The book begins by outlining the structure and functioning of financial markets and institutions, before moving into key areas of risk measurement, including interest rate, market, and liquidity risk. It then explores emerging themes such as fintech and operational risk. The later chapters focus on practical risk management tools, including capital adequacy, derivatives, securitisation, and prudential regulation across major economies.
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Persons
Milind Sathye is Adjunct Professor, University of Canberra (previously professor of banking and finance for 24 years) and currently, Chair Professor Finance, FLAME University, Pune (India). With 17 years of experience at Reserve Bank of India/NABARD, he has published several research papers in top-tier journals and banking textbooks.
Tonmoy Choudhury is an Associate Professor at the Dubai Campus of Rochester Institute of Technology, NY, USA. He is a Chartered Accountant and an academic specializing in accounting and finance, with research interests spanning risk management in financial markets and microstructures, sustainability, and emerging financial technologies.
Li Xian Liu is a Senior Lecturer in Finance at James Cook University. She has a strong academic background and industry experience in emerging markets, with recognised achievements in both teaching and research. Her research focuses on foreign investment, banking efficiency, corporate finance, ESG, and knowledge transfer in multinational enterprises, adopting a cross-disciplinary approach that spans finance, international business, and sustainability.
Tapan Sarker is a Professor of Finance specialising in sustainable finance, financial economics, and risk management. A former World Bank scholar, he has authored five books and widely published in leading journals, with extensive academic leadership and global affiliations, contributing to policy-relevant research in ESG, climate risk, and financial resilience.
Content
1 Financial Markets, Institution and Instruments and their regulation.- 2 Interest rate risk.- 3 Market Risk.- 4 Liquidity risk.- 5 Fintech Risk.- 6 Off Balance sheet (OBS) Risk.- 7 Technology and operational risk.- 8 Liability and Liquidity management.- 9 Capital adequacy.- 10 Using derivatives: Futures and Forwards.- 11 Using derivatives: Options and Swap.- 12 Securitisation.- 13 Prudential supervision.