Enterprise Risk Analytics for Capital Markets

Raghurami Reddy Etukuru

Publisher: iUniverse Pages: 417 Price: (paperback) $26.95 ISBN: 9781491744925 Reviewed: January, 2015 Author Website: Visit »

In the wake of the regulatory requirements of Dodd-Frank and Basel III, financial institutions are challenged to become more transparent and systematic about their policies. The G20 is committed to a resilient financial system and that means better management of systemic risk. This book codifies the state of the science of risk management for capital markets and provides an introductory text for risk management professionals.

This crisp, readable narrative covers the key components of risk management, including risk knowledge, quantification, data management, data aggregation, architectures, analytics/reporting, and regulation. Composed in numbered sections, the text is well organized, with many bullet points, numbered lists and mathematical formulas. It also includes a glossary of financial terms of over 50 pages.

The second section of the book gives cogent definitions of such financial products as bonds, options and derivatives. The author discusses the categories of such products and some of the theories and strategies associated with them. This 80-page section will be useful to amateurs hoping to improve their financial literacy. The remainder of the text is for the professional only.

One flaw in the book is that some of the mathematical formulas are extremely difficult to read. This is especially the case on pages 90-94 and hamstrings even the reader who is willing and capable of following the author’s math, which can be challenging.

Quantitative models have been effective in the natural sciences and engineering. Similarly, this book offers quantitative ways to manage risk, taking a step toward transforming risk management into a reliably predictive science. Budding professionals in the financial risk management field will find this a valuable resource.

Also available as an ebook.

Author's Current Residence
Mooresville, North Carolina
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