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8 Financial Risk Management Books to Read – Part 2

Estimated reading time: 4 minutes

 

The Hungry Mind: Part 2

Prudent statistical approaches and analytics are needed in understanding and managing risk today.

Organizations must create the right strategies that reflect the kind of risks inherent in their environment.

Strategies must address changes in regulations and emerging risks in the increasingly interconnected global financial world.

For risk management proficiency at work or for exam prep, here are eight more books to read.

 

1. A Practical Guide to the Risk Management by Thomas Coleman

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The book starts with the basics of risk and also gets into the details of measuring and as well as managing it.

Thomas builds a clear to follow guide to quantitative means of risk analysis disclosing tools that are vital to effective risk management in financial organizations.

The critical areas tackled by the author are such as; risk analysis, management of risk, and the role of statistics and probability in addressing financial risks.

This literature provides further guidance on risk measurement, financial risk events, estimating volatility methods and VaR, systemic vs idiosyncratic risk, credit risk simulations, and risk reporting.

The author helps to create a holistic understanding of the risk by exploring conventional methodologies to risk management and their potential and limitations.

He captures the dynamic nature of risk. For students and professional risk managers, this book can serve as an excellent guide to risk understanding and the tools and techniques for its effective management.

 

2. Risk Management for the Dummies by Aaron Brown

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Financial Risk Management for Dummies serves a summarized overview of risk for beginners. The author explores the different forms of risk and ways of evaluating them.

He guides on how to create strategies for addressing diverse and dynamic risk scenarios in organizations of all sizes.

Aaron Brown is a one-time winner of the GARP Award for the Risk Manager.

His work breaks down the intricacies of financial risk management in simple, comprehensive steps that can be followed by anyone regardless of their background.

By the last page, you will have an expert level understanding of measuring, managing, and communicating risk.

For students and exam candidates, the summarized and simplified style of content delivery here could help to accelerate your understanding and enhance the retention of risk concepts.

For FRMs at work, Aaron provides practical solutions to some of the daily challenges in the management of risk.

 

3. Financial Risk Management: Applications in the Market by Wei and Jimmy Skoglund

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These two authors tackle risk management practices in the banking industry.

They introduce and break down the details of some of the complex techniques and tools that could be effectively used to understand, measure, predict, and manage risk in financial institutions.

This book is for you if you are in search of ways to develop and implement advanced risk management approaches in the banking industry.

The authors have broadly explored how workflow modernization, changes in market behavior, and shifts in organizational risk culture today affect the scope of financial risk management.

Reading this will give you extensive knowledge of the quantitative aspects of financial risk management in banking operations.

You will get a third eye perspective on regulations, market risk, credit risk and assets, and macroeconomic stress testing.

This book is a treasure trove of knowledge for anyone in the finance industry.

 

4. Risk Management: The Practitioner Guide to Market managing and the Credit Risk by Steve Allen

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This book is a detailed guide written by a competent risk management specialist. He sheds clarity on isolating, measuring, and management of risk accurately and effectively.

He explores the market and the credit risk with practical examples of strategies applicable in the real world of financial risk management.

You could make this your playbook to help you create more value at work.

You can similarly leverage it as an additional resource for developing a broader understanding of global risk issues, market valuation, and structured limits for the controlled risk taking.

The book provides further clarity on the effective mathematical models for risk management alongside other conventional methodologies.

The Second Edition links back to their website where you will get access to more content on the management of risk and even worked examples.

 

5. Operational Risk Modeling in Financial Services by Patrick Naim and Laurent Condamin

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Here is a guide to level up your understanding of operational risk modeling in the financial world.

The authors provide evidence-based non-statistical approaches to modeling operational risk.

The literature delves into structured management judging with the formula of Exposure, Occurrence, Impact (XOI).

Currently, the Basel Committee does not endorse the efficiency of any statistical approaches to risk modeling.

XOI is a forward-thinking approach to operational risk quantification.

It streamlines and consolidates risk quantification and management, and this book gives a comprehensive overview of the new framework.

This book is for students looking to expand their understanding of risk modeling and improve their preparedness for management of risk in the real world.

It comes highly recommended as well for financial risk managers looking for a new and efficient framework that is well suited for the unique nature of operational risk today.

 

6. Operational Management of Risk: Best Practices in the Financial Services Industry by Ariane Chapelle

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Ariane offers a guide of the latest and most effective operational risk management operational approaches in the financial world.

This book can help you understand best practices and tools as used and applied by the leading financial institutions.

The author breaks down the complexities of operational risk management from fraud to information security and brand reputation.

She puts together a clear to follow guide on the risk that entails risk identification, assessment, mitigation, and monitoring.

This book is written both for students and those at the helm of financial risk management in organizations.

 

7. Quantitative Financial Risk Management by Michael B. Miller

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Quantitative Financial Risk Management delves into the statistical details for measuring and managing risk.

Michael creates a simplified introduction for students of risks and goes deeper into the financial models and mathematical techniques for risk management in the workplace for professionals.

Quantitative Financial Risk Management can serve as useful reference material for your GARP FRM preparation.

Chapters covered here include Credit risk, Value at risk Stress testing, Factor analysis, Extreme value theory, Liquidity risk, Risk model backtesting, and Bayesian analysis, among others.

Each chapter concludes with questions and answers.

 

8. Guide to effective risk management by Alex Sidorenko and Elena Demidenko

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Risk management should be a conversation in every business strategy and decision-making session.

The two authors provide practical ways to consolidate risk management and decision making in the business processes.

They compile surveys and interviews from leaders and risk experts and provide practical ideas on how to achieve integration in the day-to-day activities of your organization.

This book comes highly recommended for students and professionals alike. It reminds us that risk management is more than just tools and techniques.

It explores how corporate culture and risk mindsets play a role in the success or failure of risk management.

You can use it as a guide for an impactful understanding of the risk to drive better value from risk management at work.

 

Thank you

We believe these additional books can help you succeed in the FRM exams as well as attain proficiency in the work environment. Use the following links for more insights:

 

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