Integrating Corporate Risk Management, by Prakash Shimpi and several colleagues at the Swiss Reinsurance Company, is a decidedly forward-thinking and practical resource for any manager seeking innovative ways to boost shareholder return. Based on the increasingly harmonious relationship between corporate finance, risk management, and insurance, it shows how concepts from each discipline can be effectively combined for superior overall results. The first section explains why a solid risk-management strategy is critical to earnings growth and corporate reputation--"because it reduces a firm's chances of experiencing financial distress and shields it against events that might thwart or distort its agenda"--and how a tightly coordinated effort can produce maximum payoff with minimal cost. The second section lays out specific products and procedures from both the insurance and capital markets (such as double-trigger options and credit derivatives) that, taken together, provide "a formidable addition to the conventional techniques currently employed." The final part looks at future prospects and challenges in the U.S., Europe, and Asia, and ways that companies can prepare for this new environment. In all, the total presents a surprisingly accessible framework that could certainly help committed readers decrease their corporate risk and increase their bottom line.

(Texere Publishing) A text adding to the current theory of managing risk, relying strongly on the role individuals play within the corporate whole as they manage a the corporation's risk and capital resources. Shows how individuals need not use the same technique, but how they must share a common view of risk.

Table of Contents

The Foundations

1. Everyone Is a Risk Manager

2. The Conventional Approach to Risk Management

3. Integrating Risk Management and Capital Management

4. Risk Mapping

The Tools

5. Converging Markets and Integrated Solutions

6. Multi-Line and Multi-Trigger Products

7. Finite Risk Reinsurance

8. Run-Off Solutions

9. Contingent Capital

10. Insurance-Linked Securities

11. Weather Risk Management

The Future

12. Global Outlook

13. Prospects and Challenges

14. Migrating to the New Environment



About the Author

Prakash A. Shimpi has an extraordinarily wide and deep experience in financial and capital markets. He is Managing Principal (U.S.) for Swiss Re New Markets. Swiss re is a leading reinsurance firn with a worldwide reputation for innovation in financial techniques and imstruments. Before joining Swiss Re in 1995, Shimpi wass managing director of the Global Insurance Corporate Finance Division of Chase Manhattan bank. Previously, he had been vice president and manager of the Insurance Portfolio Strategies Group at Drexel Burnham Lambert. Shimpi earned his bachelor and master degrees from the London School of Economics and Political Science and an MBA in finance and international business from the University of Chicago. he is a fellow of the Society of Actuaries and a charted financial analyst.