Managing Financial Risk is the most authoritative and comprehensive primer ever published for financial professionals who must understand and successfully use derivaties. The previous edition of this professional financial classic sold over 18,000 copies and emerged as a leading training tool in the derivatives industry. The book covers derivative products from the most basic to the most complex and explains how derivatives are used by each major player in the market: dealers, financial firms, and corporations. In addition, the book includes short contributions from a variety of experts from leading companies such as Citibank, J.P. Morgan, British Petroleum, and Ciba-Geigy. Completely updated to include new material on new products such as commodity swaps and credit swaps, this edition will cover every aspect of the derivatives marketplace with insight and authority.



Table of contents :



The Evolution of Risk Management Products.

An Overview of the Risk Management Process.

Impact of the Introduction of the Risk Management Products.

Forward Contracts.

Applications of Forwards.

Futures.

Applications of Futures.

Swaps.

Applications of Swaps.

A Primer on Options.

First-Generation Options.

Applications of Options.

Second-Generation Options.

Engineering ``New'' Risk Management Products.

Hybrid Securities.

The Dealer's Perspective.

Measuring and Managing Default Risk.

Managing Price Risk in a Portfolio of Derivatives.

Risk Governance.

Risk Management and the Value of a Nonfinancial Firm.

Measuring a Nonfinancial Firm's Exposure to Financial Price Risk.

Implementing a Risk Management Program.

Uses of Risk Management Products by Banks and Other Financial Institutions.

Uses of Risk Management Products by Institutional Investors.



About the author:

Charles Smithson is a managing director and head of the CIBC School of Financial Products. In addition to his work in the private sector, Mr. Smithson has held positions in academe and the U.S. Government. He served as a member of the Working Group for the widely recognized Groups of Thirty Derivatives Project and currently serves on the boards of directors of the International Swaps and Derivatives Association (ISDA) and the International Association of Financial Engineers. Mr. Smithson has written articles for academic journals on subjects ranging from labor market discrimination to product liability to financial engineering. His other books include The Doomsday Myth, Managerial Economics, The Economics of Mineral Extraction, and The Handbook of Financial Engineering.