Book Description

This consumer-oriented textbook addresses the principles of risk management without skimping on the discussion of insurance. It summarizes the nature of pure risk on the individual and on society and illustrates how insurance can be used to deal with the problems posed by such risk. Mirroring the diverse experience of its authors, the text is equally effective in presenting the principles of insurance theory and offering how-to advice to students. Throughout, the main emphasis is on the insurance product and the use of insurance within the risk management framework. The traditional fields of life insurance, health insurance, property and liability insurance, and social insurance are treated in terms of their relationship to the wide range of insurable risks to which the individual and the business firm are exposed. ... Read more

Reviews (2)

Fundamentals of Risk and Insurance
Updated to reflect changes in the field since 1999, this volume provides a comprehensive introduction to the field of insurance, with a consumer emphasis on the insurance product.

How Do I Write a Review about an Insurance Book?
Well, I guess I can try to review this book from the only perspective I read it from: that of a student. I had to read it for my CFP class on Insurance, and, as an introduction to most forms of insurance, it explains the forms in a very methodical and systematic way; it was very easy to follow and tough to get completely lost.

Honestly, I was never really fascinated with insurance. My life-licensing class was 24 hours of classroom time spread out over one weekend, so maybe that has created some insurance-related intellectual scars. The sections on Life Insurance and the basic components of any insurance contract and the whole insurance process were already familiar to me, so I found those sections incredibly uninteresting. The other forms of insurance were much more interesting and gave me a great foundation for other insurance studies I've done since.

The prose of the book, too, flows extremely well. In fact, I usually just lightly read passages explaining computations and formulas because I come back later to review them in-depth; however, while reading this book, I actually felt I fully understood most of the computations even while I read (which almost never happens because most formula-explaining reads much like Kant's "Metaphysics of Morals").

Just one closing point... I guess you'd have to be either Insurance Commissioner or a professor of insurance to be really interested in this material, but the authors write in a way that allows even the average CFP or insurance student to come away from the book with a good sense of how insurance works and where it fits into an individual's financial plan. ... Read more

Amazon.com

With the stock market breaking records almost daily, leaving longtime market analysts shaking their heads and revising their forecasts, a study of the concept of risk seems quite timely. Peter Bernstein has written a comprehensive history of man's efforts to understand risk and probability, beginning with early gamblers in ancient Greece, continuing through the 17th-century French mathematicians Pascal and Fermat and up to modern chaos theory. Along the way he demonstrates that understanding risk underlies everything from game theory to bridge-building to winemaking. ... Read more

Reviews (111)

No Risk here, The Odds areYou'll love it.
i'm very much a novice in the study of risk and probabilities; however, I've been lucky enough to come across some excellent business oriented books - but in actuality and thankfully far more philosophical than financial - (Fooled by Randomness for instance) lately that have done a masterful job of presenting this seemingly dry subject in a very fascinating way. Bernstein has probably written the quintessential historical study on Risk and Probability with this volume. It is filled with interesting details of the human qualities and quirks of the mathematicians and philosophers that investigated the problems of probablity and explains the mathematics involved with lucidity and wit. The book follows a chronological approach; however, it's also thematic to show the evolution of the subject of risk management and the influence of other sciences on it - such as evolution. Those that refuse to accept the idea that markets remain unpredictable despite the development of modern risk control mechanisms like derivatives, computer modelling, and modern financial instruments will find this book frustrating. Those who want a wquick fix investment solutions guide will be even angrier and will nort find anything useful here. This book belongs in the philosophy of science and History of Ideas sections far more than the business dept. Nonetheless, the serious and thoughtful investor is advised to read this book carefully. as someone who's lost in the stock markets himself the Bernstein's book can reduce the sting of the loss and impart some well needed wisdom. I no longer invest but I loved this book all the same.

Long on history, but short on risk management strategy
The title of my review is aimed at warning those expecting to find a risk management manual in this book that they will be disappointed. So will those who expect to find the links between the evolution modern statistics and acturial science to the rise of insurance markets and risk management instruments which have proliferated in this century. Many other books quite ably cover these interesting topics.

Instead, the author provides a broad sweeping history of how modern statistics evolved and which answers some questions of why it took so long for modern risk management institutions to emerge. Ancient Greeks, among others, who appeared to be within easy reach of developing statisical theory, nonetheless relegated their fate to the whims of gods, rather than making them amenable to analysis with probabilities and actuarial tables. Tracing modern risk management from the time of Jacob Bernoulli's attempt to develop probabilities from sample data, the author also shows how a knowledge of probabilities can ultimately generate value. QUOTE Reality is a series of conneceted events, each dependent on another, radically diffeent form games of chance in which the outcome of any single throw has zero influence on the outcome of the next throw UNQUOTE The book closes with risk management innovations that followed the emergence of financial volatlity in the 1970s.

Ultimately, this book may be of less interest to statisticians and investment professionals, other than those who have a curious interest in how today's highly developed set of instruments, institutions, and policies around risk came about from the foundations provided in statistical theory.

History Buffs: Here you go!
Against the Gods draws you through a vast time span. Peter Bernstein begins with the conception of the Arabic numbeting system, up through present time super speed computers. Although, the history found in this book is interesting, the title leads you to believe it is all about investment risks, however it is more of a history text book than a manual. This book is a story of theories and how they developed. You will learn quite a bit about ancient times and how things evolved into the way that they are now, but do not expect any great help or advice on how to deal with risks in the investment world. Once you get into this book, Bernstein's writing sytle draws you in. The book is interesting enough, Bernstein's knowledge of hisotry is astounding. History Buffs: here ya go!

Good outline of the history of risk
"Against the Gods" is a book outlining the history of risk. The book provides an outline of all the key players and their contribution to risk theory and management. Chronologically, the book begins in ancient times and stretches all the way to the present, where Bernstein delves into the works of modern day risk luminaries. The book is well written and the style is engaging, with the author always managing to find a way to keep the reader entertained as well as informed.

The book does not pretend to be a "how to" guide for risk management, nor should readers treat it as such. Although the book does discuss modern risk management tools such as derivatives, it is devoid of complex technical analysis and its treatment of such devices is limited to outlining their place in the history of risk. Those looking for technical trading analysis should seek elsewhere.

One of the key questions a potential reader of this book should be asking is "Does this book have any practical applications with regards to modern day risk management?" Whilst as mentioned above the book is not a step by step guide, I firmly believe the book is useful insofar as it enables the reader to avoid the pitfalls of the past. For example, capital markets are continually surprising those who hold an unwavering belief in "regression to the mean". The books provides an explanation of what this theory states, how it has been applied and where overzealous disciples have misused this principle in the past. Overall I would recommend this book as an informative and enjoyable read.

Neutral Recommendation - Do Not Buy - Maybe Borrow
I am going to give you a short review and to the point.

I read this book because it was recommended on "Money Talk" the national radio show on every weekend for 6 hours on investing - Bob Brinker hosting. He is an excellent market timer and gives solid advice. Follow his (diversified investment) advice and you will make lots of money and unlike mutual funds do better than the S&P 500 with low expense ratios.

He had a recommended reading list and he named this book. The book is a disappointment. It is light weight stuff. Only part is on the markets. Frankly I cannot recommend the book.

The point of the book is that the market carries risk. Most people know that and never put more than 4% in one stock. Even Bill Gates knows that and has quietly converted some of his Microsoft stock into other areas. So skip the book and just invest in government backed instruments or follow the golden rule, no more than 4% in one stock.

Jack in Toronto ... Read more

Book Description

This book focuses on problem-solving from managerial, consumer, and societal perspectives. It emphasizes both the business managerial aspects of risk management and insurance and the numerous consumer applications of the concept of risk management and insurance transaction.Specific chapter topics include insurance Regulation and contracts, basic property and liability insurance contracts, homeowners insurance, the personal auto policy, professional financial planning, life insurance policies, annuities, medical expense and disability insurance, standard life insurance contract provisions and options, commercial property insurance, general and special liability insurance, employee benefits, social security, and unemployment and workers' compensation insurance.For use by individuals in insurance occupations, and by those preparing for the certified financial planner board. ... Read more

Book Description

This proven, market-leading book provides a thorough, current introduction to risk management and insurance. It assists the reader in identifying, analyzing, and managing risk through insurance and alternative tools/techniques such as loss control, risk retention, and risk transfer. This edition presents an even stronger focus on managing risk and covers insurance within this context. Concepts of risk management are presented as they apply to business and personal situations as well as international situations. ... Read more

Book Description

In keeping with technology's shift toward qualifying rather than quantifying risks, Risk Management: Concepts and Guidance, second edition has 13 new risk techniques and describes significant changes in the ways risk tools are applied. Focusing on a systematic approach to risk management, the book includes 29 chapters that highlight specific techniques to enhance organizational risk identification, assessment and management, all within the project and program environments. ... Read more

Reviews (2)

A great blueprint for risk assessment and mitigation
When I began my Project Management Professional certification through George Washington University and Motorola several years ago, one of the first courses I took was one dealing with project risk analysis and response. The text for the class was Risk Management: Concepts and Guidance, by Carl Pritchard, and has served as a blueprint for assessing and mitigating risk in many projects for which I was responsible.

Pritchard's emphasis is not on designing assessments and mitigation strategies for all circumstances, but on building useful information that can be applied toward a particular project situation. This book has a natural alignment with the principles and concepts of <>, produced by the Project Management Institute's (PMI) Standards Committee. While the PMI identifies four phases of risk management, Pritchard adds a fifth phase upfront, called risk planning.

The book is divided into two major sections: Section 1 addresses risk processes and practices; Section 2 is concerned with specific risk management techniques. The four appendixes contain information on contractor risk management, list of risk sources, basic probability concepts, quantifying expert judgment, and special notes on software risk. The book concludes with a glossary of terms, bibliography, and index.

Of particular value in the book are the 50+ figures and tables that illustrate some of the more complex statistical/probability models used in risk assessment and mitigation. Each chapter follows a template that structures the same type of information. For example, each chapter in Section 2 contains the following subheadings:Technique Description; When Applicable; Input and Output; Major Steps in Applying the Technique; Use of Results; Resource Requirements; Reliability; Selection Criteria; Output; Summary

The 218-page book (softcover)is an easy read and a highly useful desk reference for any project manager concerned about planning for and mitigating risk to projects. My dog-eared, heavily highlighted copy has served me well over the past 3 years.

Excellent resource!
I used this text as part of a Risk Management course, and I expect to use it in practice. It's an excellent resource for risk managment tools. Especially for quantifying financial risks. ... Read more

Book Description

This unique book is a guide for students and graduates of mathematics, statistics, economics, finance, and other number-based disciplines contemplating a career in actuarial science. Given the comprehensive range of the cases that are analyzed in the book, the Actuaries' Survival Guide can serve as a companion to existing study material for all courses designed to prepare students for actuarial examinations.

* Based on the curricula and examinations of the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS)
* Presents an overview of career options and details on employment in different industries
* Provides a link between theory and practice; helps readers gain the qualitative and quantitative skills and knowledge required to succeed in actuarial exams
* Includes insights from over 50 actuaries and actuarial students
* Written by Fred Szabo, who has directed the actuarial co-op program at Concordia University for over ten years ... Read more

Reviews (1)

Fred Szabo Doesn't Deserve To Be Called An Author
This book is useless. I bought it hoping to learn more about the actuarial profession. I returned it after the first "chapter." Basically the author asks a question and then obtains responses from 40 different people in the industry (students, professors, insurance companies, etc.) It is extremely boring and informative. This is nothing more then the results of a questionare give to a few hundred people. Szabo isn't an author, he's a data entry clerk. SKIP! ... Read more

Book Description

Catastrophe Modeling: A New Approach to Managing Risk is the first book that systematically analyzes how catastrophe models can be used for assessing and managing risks of extreme events. It focuses on natural disaster risk, but also discusses the management of terrorism risk. A unique feature of this book is the involvement of three leading catastrophe modeling firms, AIR Worldwide, EQECAT, and Risk Management Solutions, who examine the role of catastrophe modeling in rate setting, portfolio management and risk financing.

Using data from three model cities (Oakland, CA, Long Beach, CA and Miami/Dade County, FLA), experts from the Wharton School of the University of Pennsylvania examine the role of catastrophe modeling to develop risk management strategies for reducing and spreading the losses from future disasters. Given the uncertainties associated with terrorism the book points out the opportunities for utilizing catastrophe models to set insurance rates and to examine public-private partnerships for providing financial assistance in the event of a terrorist attack.

Reviews (1)

Excellent!
This book covers so many great topics that it is impossible to go into all of them in an amazon review.Suffice to say, for anyone in the reinsurance business, or anyone interested in risk management in general, this is simply a terrific book.The subject matter is dense, but the writing is lucid and engaging.Nicely done! ... Read more

Book Description

Apart from standard actuarial theory, Modern Actuarial Risk Theory contains methods that are relevant for actuarial practice, for instance the rating of automobile insurance policies, premium principles and IBNR models, as well as generalized linear models with an eye on actuarial applications. Furthermore extensive introductions are given to credibility theory and ordering of risks. The book reflects the state of the art in actuarial risk theory. In addition to some chapters which are compatible with official material of actuarial education in North-America, Europe and other parts of the world, the book contains important material on topics that are relevant for recent insurance and actuarial developments including determining solvency measures, fair-value computations, reserving, ranking of risks, modelling dependencies and the use of generalized linear models. Basic ideas on risk measures in the framework of insurance premiums are also considered. The numerou! s exercises contained in Modern Actuarial Risk Theory, together with the hints for solving the more difficult ones and the numerical answers to many others, make the book useful as a textbook. Some important practical paradigms in insurance are presented in a way that is appealing to actuaries in their daily business. The mathematical background assumed is on a level such as acquired in the first stage of a bachelors program in quantitative economics or mathematical statistics. ... Read more

Book Description

Workers' compensation causes headaches throughout all levels of an organization. Injuries affect production, costs, and morale. Managing Workers' Compensation: A Guide to Injury Reduction and Effective Claim Management lays out - in logical order - management and safety procedures that reduce injuries and the aggravation that follows. The authors cover hiring, training, and managing employees with injury avoidance in mind. They provide a blueprint for dealing with injured employees and their families, and for determining the correct time for the employee to return to work.The book discusses the all-important issues of fraud, modified duty, substance abuse testing and accident investigations. It also provides guidance for managing your organization's safety efforts in a manner that targets workers' compensation cost control as one of its major objectives. In addition to comprehensive coverage of workers' compensation, the book gives you a thorough explanation of additional sources of assistance, including the availability and utility of Internet safety resources, a complete listing of state workers' compensation agencies, and sample checklists that help you evaluate your workplace. Although workers' compensation laws vary from state-to-state, the principles behind the system and the ability of employers to influence their own premiums remain consistent. By gaining a thorough understanding of these principles and implementing proven cost control strategies, you can realize substantial savings. Managing Workers' Compensation: A Guide to Injury Reduction and Effective Claim Management explains the process by which premiums are calculated and shows how you can impact - favorably - the amount your organization pays in premiums. ... Read more

Book Description

Revised, updated, and even more useful to students, teachers, and practicing professionals
The First Edition of Loss Models was deemed "worthy of classical status" by the Journal of the International Statistical Institute. While retaining its predecessor's thorough treatment of the concepts and methods of analyzing contingent events, this powerful Second Edition is updated and expanded to offer even more complete and flexible coverage of risk theory, loss distributions, and survival models.
Beginning with a framework for model building and a description of frequency and severity loss data typically available, it shows readers how to combine frequency, severity, and loss models to build aggregate loss models and credibility-based pricing models, and how to analyze loss over multiple time periods. Important features of this new edition include:
* Thorough preparation for relevant parts of preliminary examinations of the Society of Actuaries (SOA) and Casualty Actuarial Society (CAS)
* Exercises based on past SOA and CAS exams
* Examples using actual insurance data
* Practical treatment of modern credibility theory
* Data files and more from an ftp site
Loss Models, Second Edition is an important resource, providing a comprehensive, practically motivated toolkit and an excellent reference, for actuaries preparing for SOA and CAS preliminary examinations, students in actuarial science who need to understand loss and risk models, and practicing professionals involved in loss modeling. ... Read more

Book Description

In his best-selling Irrational Exuberance, Robert Shiller cautioned that society's obsession with the stock market was fueling the volatility that has since made a roller coaster of the financial system. Less noted was Shiller's admonition that our infatuation with the stock market distracts us from more durable economic prospects. These lie in the hidden potential of real assets, such as income from our livelihoods and homes. But these ''ordinary riches,'' so fundamental to our well-being, are increasingly exposed to the pervasive risks of a rapidly changing global economy. This compelling and important new book presents a fresh vision for hedging risk and securing our economic future.

Shiller describes six fundamental ideas for using modern information technology and advanced financial theory to temper basic risks that have been ignored by risk management institutions--risks to the value of our jobs and our homes, to the vitality of our communities, and to the very stability of national economies. Informed by a comprehensive risk information database, this new financial order would include global markets for trading risks and exploiting myriad new financial opportunities, from inequality insurance to intergenerational social security. Just as developments in insuring risks to life, health, and catastrophe have given us a quality of life unimaginable a century ago, so Shiller's plan for securing crucial assets promises to substantially enrich our condition.

Once again providing an enormous service, Shiller gives us a powerful means to convert our ordinary riches into a level of economic security, equity, and growth never before seen. And once again, what Robert Shiller says should be read and heeded by anyone with a stake in the economy.

Reviews (17)

Interesting read, author is quite optimistic.
This book is very interesting, but I think that the author in may be a bit full of himself. This is the same guy who wrote the book 'Irrational Exuberance' months after the stock market peaked in January 2000 and claims to have predicted it. I feel that most of the hype about Robert Shiller is Irrationally Exuberant. However this does not mean this book is not worth looking at. It has some interesting proposals, although many of them are either far-fetched or dangerously close to a creating a corporate Orwellian state.

A fascinating alternative view of the financial system
Shiller is a visionary economist.The problem with visionaries is that they do not always see the world the same way as everyone else.

This book outlines how Shiller believes a range of innovative risk management products could change the international financial system, and at the same time raise the living standards of ordinary people.Shiller wants to create derivative products which would allow people to use financial markets to hedge against loss of income, or the decline in the value of their house, for example.

Now this is pretty daunting stuff for the average reader, and I doubt that most of the people Shiller wants to help would fully appreciate the complexities of the things he advocates.

The other problem I have is that I simply don't believe all of Shiller's ideas are feasible.Moreover, even he would have to admit it is impossible to eliminate risk from life, yet that is what he tries to achieve.

I think it is a terrific book for those who want to ponder "what if."It can be a hard read though.

A Must Read!
Economist Robert Shiller became a household name when he published his previous bestseller Irrational Exuberance just as the dot.com boom was peaking. In The New Financial Order, he capitalizes on his celebrity to put forward a thoughtful, detailed proposal for managing economic risks. This highly readable book portrays a future in which many serious individual financial risks are dispersed to savvy global investors, thanks to technology. Imagine violinists being able to insure their careers in addition to their Stradivarius instruments, developing countries securing generous loans from the first world by tying the repayment schedules to their future GDPs and a revamped tax system preventing the gap between rich and poor from widening. We suggest this book to risk-management professionals who want to step back and look at the big picture, as well as to anyone who has a stake in creating new financial products to meet twenty-first century needs.

Big Brother meet the Free Market
This is a big, big book. Although it contains only 276 pages of commentary, its scope envisions a brave new world we can only imagine and argue about. No doubt the outcome of the argument will weigh heavily on our future for years to come. Professor Robert J. Shiller needs no introduction. Whether by intent or luck, his "Irrational Exuberance" warning about our overvalued stock market was published around the time NASDAQ topped out just above 5000 (March 2000). The rest is history. And while I, as a former member of two options exchanges, certainly welcome any suggestion to increase the trading opportunities available to us today, the six innovative financial instruments he proposes to reduce/share risk leave a lot to be explained, both mechanically and philosophically. The book, though, rates five stars for its thought-provoking ideas and for the stature that Shiller brings to them. There's a lot in this book and nothing in it should be discarded without extensive study and reflection. One of life's hardest lessons to accept is that none of us, either individually or collectively, can ignore the dynamic world we live in. Sitting still is not an option because of the relative motion of everyone else in the world. Our only choices are, in the immortal words of Lee Iacocca, "Lead, follow, or get out of the way." Today's informational databases were sure to evoke something like Shiller's ideas. It is useless to turn our heads because it will happen. Therefore the intent of this book should be exposed to the largest possible number of people because what we decide will determine how we spend the rest of our lives. On the surface, Dr. Shiller would be creating a Dr. Pangloss world, but the devil would be in the details.
The most obvious aspect of Shiller's proposals is that he would use classical capitalistic markets to achieve classical socialistic goals. A most creative feat in and of itself. Insuring against risk, of course, is nothing new. Lloyd's of London dates back to Edward Lloyd's coffeehouse in the late 1680s. But not only does Shiller want to mitigate the risk of error in individual decision making, he also wants to insure "society" against the collective mistakes of all. It will be interesting to see which power groups line up on which side of the argument. Maybe he isn't proposing cradle-to-grave socialism, but certainly something close to young-professional-through-retirement risk sharing as administered/regulated by a combination of governmental/financial superbodies.
He convincingly begins his presentation with a short history of how new innovations are always refuted at first, then eventually work their way into our lives. This is a good start to set the stage for his own ground-breaking ideas.
There is no point in going over the mechanics of the proposals because they will see many different permutations before they ever become tradable entities, but more important are the goals and philosophy that pushes them all.
His first proposal covers personal insurance: livelihood insurance to reduce the risk of people embarking on a dead-end profession. He is inspired here by the very legitimate concern that society losses out on tremendous talent when gifted individuals steer away from professions that might not pay off in the future. He feels that if we insure them against this failure, their contributions will pay off in the long run. Also included in personal insurance is his proposal for home equity insurance to guard against a decline in your home's value. He's already put his money where his mouth is by incubating such a company and then selling it to a financial conglomerate.
Next is MacroMarkets. Here he envisions GDP futures to enable trading in national economies based on how they perform. One of the benefits here would be when a country's GDP begins to weaken, it would be a signal to the affected economy's leaders that something must be done to remedy the situation or else things will get worse.
Third, he addresses banking and income-linked loans. Interest rates on loans would rise or fall with one's income, region, or profession, and could be used to modify or eliminate current bankruptcy laws. However, could a bank stay solvent by lending money on fluctuating terms unless it could also pay interest on fluctuating terms? We've just lived through the S & L crisis borne out of this same scenario.
Fourth, he tackles his most inflammatory subject, that of income inequality. His basic fear here, along with Dr. Ravi Batra and others, is that increasing disparity of income leads to riots, revolutions, and war. But who decides what is fair and equitable? And would an earlier leveling effect have robbed us of the builders Carnegie, Rockefeller, and Ford up through Walton and Gates?
Fifth - Intergenerational social security. This is the most pressing problem today and will cause the most heated debates going forward. What is fair can be debated until we all die of old age.
Last, he would like to set up swaps between rich and poor, strong and weak nations based on their GDPs. But what happens when politicians are accused of "exporting jobs" like companies are today? They won't be in office very long. The IMF doesn't have a great record getting the masses to toe the line either when it comes to living up to prior agreements.
The scariest ingredient of all Shiller's proposals is the collection, retrievaland analysis of masses of amounts of information (GRID) needed to administer such an interconnected trading arrangement. Yet, the Internet is making us one people, and Shiller's financial instruments would make us one world, interconnected, co-dependent, and risk-sharing. If Clausewitz was right that war is politics by other means, then perhaps politics is economics by other means. Maybe the time has come for economics to supercede politics and maybe Shiller is showing the way. He does have a vision. Do we want to be part of it or not?

The Oracle of 21st Century Finance
By any standards, financial markets are behemoths, where trillions of dollars are traded daily in stocks, bonds, currencies or securities. But unlike common perception that values financial markets based on their profitability, their more important function is to manage risks: shares are sold to investors to spread out risk-if money is made in the process, all the better.

What is surprising is that despite the extensiveness and complexity of our financial nexus, many risks that people face are not currently covered: what happens, say, if your job is taken over by a computer? Or, if you spend seven years in school specializing in a field for which there is no market after you graduate? There is no protection against these threats. Yet, unemployment has a more adverse impact on welfare than any movement of the Dow Jones or the Euro/Dollar exchange rate. Financial markets can help people manage the latter, but not the former.

In this sense, risk management is limited. Extending its scope to manage more risks is the subject of Robert Shiller's book. Mr. Shiller, of Yale University, has put together his vision for the future: a New Financial Order where risk management can serve the people, not just investors who know the markets. "The New Financial Order" is an ambitious work, and although Mr. Shiller tries to show that baby steps have been made towards that vision, it is clear that he is thinking far ahead-decades, even more.

But what is this new order? Mr. Shiller's world is build around six pillars: livelihood and home values insurance, macro-markets where aggregate risks can be traded, income-linked loans, inequality insurance, intergenerational social security, and international agreements for risk control. These ideas are grand, as will be the markets needed to implement them.

This financial order is an attempt to reduce the effect of randomness on our lives. All these instruments, in different ways, will allow a more equitable and efficient sharing of risk, making people better off. If in the past few centuries, financial innovation led to economic prosperity, then the future of finance will be to create economic security. "The New Financial Order" is a blueprint towards that goal. ... Read more

Book Description

The ART of Risk Management

"This book evidences links and trade-offs between some key drivers of corporate value creation: capital structure, strategic definition of core and noncore risks, risk management retention and transfer, with a valuation of externalization, to achieve an integrated allocation and management of firms capital. From math to legal, it takes us a definite step forward in modern finance." –Jacques Tierny, Deputy CFO, Michelin Group

"For someone like me who has observed the evolution of financial theory and practice over the past twenty years, Culps new book is a really extraordinary undertaking and accomplishment. On one level, it provides a comprehensive–and quite readable–account of the most important financing and risk management innovations in both insurance markets and capital markets. Even more remarkable is its success in fitting these innovative solutions and products into a single, unified theory of financial markets–one that integrates the once largely separate discipline of insurance and risk management with the current theory and practice of corporate finance." –Donald Chew, Editor of Journal of Applied Corporate Finance and a founding partner of Stern Stewart & Co.

"Chris Culp succeeds to cover this multifaceted and somehow fragmented ART market in a holistic way." –Thomas Bruendler, President, Allianz Risk Transfer (UK) Limited

"This is indeed a book about convergence. It is dealing with the latest developments in the insurance and capital markets which blur the boundaries between these two areas. Laying the scientific foundations of ART, it also brings together theory and practice of this innovative field in an unprecedented way. Moreover, Culp looks behind the driving forces of ART and relates them back to their common underlying aspiration, the quest for optimal capital structure." –Paul Woehrmann, PhD, Head of Center of Excellence ART and Member of Executive Management Continental Europe Corporate, Zurich Financial Services

"Culp divulges the true nature of convergence–as art and science, rooted in both traditional theories and forward-looking practices. He demonstrates undeniably that the marriage of the insurance and capital markets, once considered futuristic, is a pragmatic solution for corporations seeking to manage risk, generate capital, and create new value." –Tobey Russ, President & CEO, Chubb Financial Solutions ... Read more

Reviews (3)

For Useless Academics
If you are a practicioner, skip this book. Even academics will find this rehash (and outright clone) of better material a waste of time.

Risk Management Processes
The focus comes from the insurance perpective and covers a niche in risk management that other books do not cover.

Packed with Knowledge!
Finance professional and professor Christopher L. Culp tells all, that is, all about alternate risk transfer (ART) products. Culp discusses corporate finance in detail, covering different types of capital. He sets out the risk control and capital structure functions of various classical and alternative risk transfer steps, such as derivatives targeted at market and credit risk, asset divestiture, insurance and reinsurance. Don't even go here if you aren't already familiar with (or studying) the sophisticated basics of finance, since this is highly technical reading, including numerous formulas, charts and graphs describing financial theories and processes. But if you are an expert, we from getAbstract congratulate you on finding your way to Culp, who aimed his book at the already-savvy: corporate treasurers, financial officers and those who participate in capital markets and the reinsurance industry. ... Read more

Book Description

Reliability, Maintainability and Risk has been updated to ensure that it remains the leading reliability textbook and cementing the book's reputation for staying one step ahead of the competition.

This 6th edition incorporates brand new material on the accuracy of reliability prediction and common cause failure based on the author's PhD research work.David J. Smith approaches these subjects from an entirely original and unique viewpoint, emphasising that the need to demonstrate that safety-related systems have been assessed against target integrity levels is now commonplace in most industries, and the material contained in this book will address these growing needs.

Reliability, Maintainability and Risk has now been established for over 20 years.It deals with all aspects of reliability, maintainability and safety-related failures in a simple and straightforward style, explaining technical terms and jargon and handling the imitations of reliability parameters.It pre-supposes no prior knowledge of the subject - the author deals with numerical data making realistic predictions using the minimum of mathematics.

David J. Smith has written seven successful works on reliability, quality, maintainability, software and statistics and is past Chairman of the Safety and Reliability Society.He has been directly concerned with this branch of engineering in the telecommunications, electronics and oil and gas industries for over 25 years.He is well known for his many courses and workshops on reliability engineering and software quality and is in a unique position to provide much-needed information on a burgeoning subject area.

Readers will be getting brand new and original information that they cannot get from any other title on the subject of Reliability, Maintainability and Risk.

Author is well known and has an excellent track record in this area.He is regarded as highly "readable" and his writing concise and straightforward. ... Read more

Reviews (1)

An ideal guide to the field of reliability for engineers.
This is the 5th edition of DJ Smith's excellent book on reliability in the real world. Having worked in this field for a number of years, I can honestly say that Mr. Smith has provided a perfect means of understanding the principles behind basic reliability calculations, in a way that is neither condescending nor unneccesarily complex. I recommend this book in the strongest possible terms to readers interested in gaining a greater understanding of the world of reliability engineering without having to trawl through pages of postgraduate mathematics. ... Read more

Book Description

The best time to plan for trouble—the death of a spouse, the collapse of a business, the loss of your home—is before you’re overwhelmed by it. This is especially important if you have a family or a small business or are beginning to save for your retirement. But what should you do first? In 50 Simple Steps You Can Take to Disaster-Proof Your Finances, money and real estate expert Ilyce Glink walks you step by step through the things you need to do to protect your family and your money so you can survive any crisis. Topics include:

* Getting organized: What do you have and where is it?
* Banking and credit: The credit, accounts, and emergency cash you need
* Travel: Traveling safer—and for less money
* Insurance and health: How to buy the important policies and save
* Investments: Diversifying to help you weather the tough times
* Family matters: Planning for your children’s and aging parents’ futures
* Estate matters: Wills, living wills, and more
* After the disaster: Finding the emergency aid you need

In her friendly and easy-to-understand style, Ilyce Glink shows you how to avoid the ten most common mistakes people make in planning for their future, helps you add up the numbers with simple worksheets, and guides you to the leading websites for more information. With this indispensable guide, you’ll know you’ve done the best you can do for yourself and your loved ones. ... Read more

Book Description

Investment Management for Insurers details all phases of the investment management process for insurers as well as fixed income instruments and derivatives and state-of-the-art analytical tools for valuing securities and measuring risk. Complete coverageincludes: a general overview of issues, fixed income products, valuation, measuring and controlling interest rate risk, and equity portfolio management. ... Read more

Reviews (1)

A Good Read!
David F. Babbel, a professor of insurance and finance, and Frank. J. Fabozzi, a professor of finance, compiled Investment Management for Insurers, an extensive series of articles (including six they wrote) on managing investments. Various experts contributed the other two-dozen plus articles. The book, which is organized in sections based on major investment management topics, focuses first on general insurance issues, such as risk management and setting up a performance management system for insurers. Subsequent articles cover fixed income products, valuation, equity portfolio management and measuring and controlling interest rate risk. This highly technical book may not be sexy, but it is very sophisticated and fully accessorized with tables, charts, graphs, mathematical formulas and footnotes. Let's be clear: it's a book for pros, an in-depth compilation that we from getAbstract recommend to professional and academic specialists in insurance investment management. ... Read more

Book Description

The content and structure of this text are based on the twin beliefs that (1) the study of insurance, a major tool of risk management, should be preceded by an understanding of procedures and concepts of risk management and (2) most students will take only one course in the area. For students who plan further study in the area, the balanced treatment of both subjects provides a broad introduction to the field.The first 6 editions of this text occupied a niche at the upper end of the textbooks on risk management and insurance. The purpose in developing the 7th and 8th editions was to further develop the reputation established by earlier editions. Most texts in the area of risk management and insurance emphasize principles of insurance and other institutional aspects of the subject. Although this text includes some institutional information, it emphasizes an analytical approach. The text focuses on the management of risk by organizations. Because of the reliance on analytical methods, the book is most appropriate for the advanced undergraduate--or introductory graduate-level courses. ... Read more

Book Description

Introduction to Emergency Management is a practical reference for professionals and students who need to understand the process of disaster response planning and mitigation.

The book details the world's leading emergency management agency, the Federal Emergency Management Agency (FEMA), covering its history, organization, programs, and operations as well as the Federal Response Plan (FRP). The authors examine the roles, responsibilities, and interrelationship between FEMA, state and local emergency management systems and other critical partners. They also explain the government emergency resources available before, during, and after crises. Practical and easy-to-reference, the text includes a chapter on terrorism and the events of September 11, 2001, and reviews their impact on disaster management and emergency planning in the future.

This essential text includes the latest information on the Office of Homeland Security and several detailed appendices which include: a list of organizations involved in disaster management, a directory of disaster management and terrorism Web sites, a glossary of disaster management terms and acronyms, and a compendium of domestic and international disaster statistics.

* Includes numerous diagrams, illustrations, and statistics on disaster management history and concepts
* Provides case studies and examples of disasters from around the world to connect theory to real-world application
* Features a special chapter on September 11th, terrorism, and the new world order of disaster management ... Read more

Reviews (1)

An Excellent Intro to Emergency Management
"Introduction to Emergency Management" is a straight-forward and insightful entre into the world of public emergency management. George Haddow and Jane Bullock are former senior FEMA officials that exerienced it first hand. And it shows.

I've added this book as one of my reference texts for the Organizational Continuity sessions I conduct. I also plan to use it in an workshop series I'm developing. It would be a great textbook for any course on Emergency Management AND it's also a good read for anyone interested in getting a taste of Emergency Management. I truly wish this book was in print when I took Emergency Management in grad school.

Highly recommended !!! ... Read more

Book Description

This book:
*provides a sound methodology for operational risk control
*focuses on management risk and ways to avoid it
*explains why and how information technology is a major operational risk
*shows how to integrate cost control in the operational risk perspective
*details analytical approaches to operational risk control, to help with scorecard developments
*explains the distinction between High Frequency Low Risk and Low Frequency High Risk events
*provides many case studeies from banking and insurance to demonstrate the attention operational risks deserve

*Assists risk professionals in preparing their institution to comply with the New Capital Adequacy Framework issued by the Basel Committee on Banking Supervision, which becomes mandatory from January 1, 2006
*Readers benefit from a significantly broader viewpoint on types of operational risks, operational risks controls, and results to be expected from operational risk management - compared to what the reader may gain from books previously published on this same topic ... Read more

Reviews (1)

Impractical and long winded diatrabe
What I wanted:

1] Definition of Operational risk
2] Basel II standard explained in easy English
3] Flowchart for how to go about dealing with it
4] Some kind of standard best practices based on his experiences

What I got

1] Operational risk is everything.
2] Basel II not explained.It seems to assume you already get it.
3] No system is presented.He argues it is all relative.
4] No best practices.Again it is all relative.

He does in fairness mention make a great deal of arguments for the need for operational risk.The problem is that anyone buying the book already understands there is a need.They are buying the book to get hints on what to do about it.I know it is all relative but as an expert he needs to take a stand and come up with some fairly universal best practices.Also he needs to realize that this is a young area and many banks are just creating their Op risk departments and need some kind of help in how to go about that.Not theory but concrete practical help.

To complicate matters his English is boorish and he uses bullets like they were going out of style.Not to sum up things like they are normally used but rather to break up run-on sentences.The sign of a well written book isn't snotty language or fancy math terms.The sign of a good book is that the readers learned something from it.I came away from this book no closer to knowing what to do about Op risk then before I bought it. ... Read more

Book Description

Security breaches, theft, and lack of resources due to natural or man-made disaster are all forms of corporate loss. The Handbook of Loss Prevention and Crime Prevention, Fourth Edition, shows how to avoid or minimize these losses with a wealth of practical information.
This revised volume brings together the expertise of more than 40 security and crime prevention experts who provide practical information and advice. The Handbook continues to be the most comprehensive reference of its kind, with the Fourth Edition covering the latest on topics ranging from community-oriented policing to physical security, workplace violence, information security, homeland security, and a host of special topics. It is a must-have reference for managers and security professionals.

* Covers every important topic in the field, including the latest on high-tech security systems, homeland security, and many specialty areas
* Brings together the expertise of more than 40 security and crime prevention experts
* Each chapter provides a wealth of practical information that can be put to use immediately ... Read more

Book Description

What all managers need to know about growth in a turbulent world

Especially in these turbulent times, good risk management is about exploiting opportunities for growth while protecting value already created. To do this, corporate leaders must, first and foremost, learn to manage the chain of cause and effect between risk and shareholder value. Now Risk shows them how. As vice chairs of the international consulting giant KPMG L.L.P., authors Mary Pat McCarthy and Tim Flynn are uniquely qualified to offer executives and senior managers this ultimate primer on risk and its optimization and management.

• Packed with case studies and exclusive interviews with executives of many Fortune 500 companies
• Explores the most successful risk management strategies now in use internationally and offers prescriptions for adapting them to any company

Reviews (3)

Highly Recommended
This is an easily accessible, short and reasonably thorough introduction to the subject of risk. The authors touch on almost every dimension of the topic, including financial risk, operational risk, reputation risk, governance risk and even the risk of terrorist attack. The book might have been quite a bit shorter and somewhat more focused on corporate management if the authors, KPMG vice chairs Mary Pat McCarthy and Timothy P. Flynn had tightened their anecdotes about anti-terrorist preparations at the Olympic Games. However, they seem to have believed that they would lose readers unless they provided a few entertaining distractions, and they could be right. Though it breaks little new ground, it plows the old ground interestingly. We recommend this portable summary of useful information to the CEOs and board members who are its intended audience, as well as to anyone responsible for risk management.

Extremely helpful and informative
This book is perfect for the times, an informative, interesting read with illustrative real-world examples. I particularly enjoyed Chapter 7 "We the People of the Board" and Chapter 8 "Audit Committee: Risk and Regulation" for the practical guidance insight provided. All in all, a digestible primer on key risk issues.

A Highly Recommended Read
If ever there was a book to capture the topic of the times, this is it. This salient, well-written book treats the topic of risk intelligently and pragmatically. Most refreshingly, it treats risk from the point of view of the business person, manager or executive forced to live with and manage risk on a day-to-day basis.

KPMG's risk management advice is coupled with interesting, colorful and very enjoyable interviews with top executives at British Airways, Oracle, Microsoft, Sprint, shipping giant P&O and others. Even General Barry McCaffrey chimes in with his thoughts on business lessons from the battlefield.

In all, an engaging read that I recommend for my peers but not my competitors. ... Read more