7 Financial Risk Management Books to Read – Part 1

Estimated reading time: 4 minutes


The Hungry Mind: Part 1

Your mind needs constant feeding and exercise not only for the FRM exams but for life in general.

When you are on a path of new knowledge acquisition, whether within the syllabus or outside of it, you become unstoppable.

Here are some books on risk management to boost your knowledge.


1. Risk Management: The Ultimate Guide to Financial Risk Management by Greg Shields

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Greg Shields puts together practical, applicable FRM concepts in this book.

It touches on the basic principles of financial risk management and delves deeper into how they apply in the business world from the stock market to organizational projects.

For a broad perspective on financial risk management and practical, real-life scenarios, you could benefit greatly by supplementing your GARP study materials with this book.

By the last page, you will have a better knowledge of investment and portfolio management. You will better understand risk and its various terminologies.

The author has expounded on risk management models, enterprise risk management, and credit risk management.

Most importantly, though, the delivery techniques by Greg Shields could help you better apply new risk management ideas and knowledge for better performance at work.


2. An Introduction to Derivative Securities by Robert Jarrow, Arkadev Chatterjea

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The co-authors are distinguished scholars in the field of finance. This book serves as an introductory guide to risk management and derivatives.

It comes highly recommendable for those seeking to expand their knowledge particular in these areas.

The authors have created clearer conceptual maps of how the markets shape macroeconomic forces and go into the details of derivative pricing models.

This literature further provides practical guidance on building risk models.

They do a side-by-side comparison of two popular risk models, and if you want a book that takes you from beginner to expert level, this is it.


3. Financial Cyber-security Risk Management by Paul Rohmeyer

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The landscape of financial risk becomes even more volatile when cyber-security comes into play.

Today’s leaders face the dilemma of business process modernization, automation, AI, and their inherent financial risks.

Paul Rohmeyer, through this book, guides business leaders on how to reconcile financial and cyber-security risks and their treatment approaches.

Financial cyber-security risk is more complicated today than was the case only a few years ago.

Markets and financial systems are interwoven, leading to dynamic environments where even the risks on the suppliers’ end can severely impact an organization.

This book brings to light the various cyber-security issues from a financial perspective.

It explores risk assessment frameworks, governance perspectives, reporting, and leadership consideration.

The knowledge delivered here can make you a better specialist for compliance issues and risk leadership in tech-driven projects.


4. The Failure of Risk Management by Douglas Hubbard

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This literature examines the current risk analysis methods and reveals why they fail in many setups.

For an FRM candidate looking to build their analytical ability for out-of-the-box thinking, this is a great resource to start with.

Douglas Hubbard takes you through how standard and conventional methodologies in quantitative analysis lead to inaccurate and poor outcomes in risk management.

Reading this book cover to cover could widen your perspectives when it comes to accurate selection and appropriation of financial risk management strategies.

You can expect more in-depth explorations on probability modeling and statistical approaches designed to improve your ability to handle practical risk scenarios.

Douglass Hubbard’s book is for business leaders and FRM candidates alike.

You can use this as a resource to lay the right foundation for quantitative analysis as Douglas guides you on how to apply correct risk principles in differing business cases.


5. Business Risk and Simulation Modelling by Michael Rees

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You can get more ideas on risk modeling and simulation from this great resource. Michael Rees dives into the techniques for risk modeling with real-life examples.

This book will serve you right, whether you are an FRM candidate or a risk specialist going after efficiency in quantitative risk assessment.

Michael reveals ways to build models in Excel with VBA macros.

The content is designed to move you from beginner to expert level by linking back to a website furnished with one hundred worked examples.

The critical areas of the book include risk assessment processes and approaches to quantification techniques.

It covers the principles and strategies in risk modeling and simulation, along with their practical applicability.


6. Enterprise Risk Management Models by David L. Olson, Desheng Wu

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David and Desheng provide broad perspectives on financial risk, from disaster management to cyber-security and supply chain issues.

The authors go on to provide risk analysis models that can be used in enterprise supply risk management.

This book could never be more relevant, especially now that businesses face financial risk from multiple fronts, from data breaches to pandemics and deteriorating international relations.

Whether for exam preparation or the better handling of risk at your workplace, Enterprise Risk Management Models will be worth your time.


7. Corporate Risk Management by Georges Dionne

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The author explores corporate risk management, putting into perspective the events that led to and followed the 2008 financial crisis.

This book casts a spotlight on corporate risk management’s importance as a higher dimension of financial risk management.

The author also introduces concepts and models for analyzing and quantifying corporate risk in relation to economic cycles.

The literature further dives into liquidity risk and operational risk and their analysis approaches. The author bisects the factors that led to major financial institutions’ failure in the 2008 crisis.


Thank You!

The book-list above will help turn you into an all-rounder in financial risk management even as you prepare for the FRM exam and boost your work proficiency.

Be sure to use the links above and below for more insights:


Stay safe and much love!

The QuestionBank Family