Risk management is regarded as one of the crucial aspects of the financial domain, with firms and businesses taking an extra mile to ensure they encounter minimum risk during any trade. While companies may be able to analyse risk sooner or later, it often is the risk management and mitigation phase which if not done on time may cost businesses millions of dollars.
Therefore companies and firms in such times tend to hire professionals who can use mathematical tools and strategies to come up with models which can predict risk. Based on the risks these professionals come up with risk management models which
Financial Risk Management
Written by Steve L. Allen this book on risk management is one of the most comprehensive guides you will find in the market with regards to effective risk isolation and mitigation. An expert in the financial domain, Steve in his book tends to explain various sorts of credit risk present in the market and later goes on to describe strategies which will help you avoid these. One of the best aspects of this book is its practical nature, which allows the readers to learn from the author’s real-life experiences where he explains about the different mathematical model which he used for risk assessment.
Financial Risk Management For Dummies
Penned down by the ‘Risk Manager of the Year’, Aaron Brown, Financial Risk Management for Dummies is one of the most concise and comprehensive guides on risk management you will find in the market. The book explains in a sequential manner everything required to set up a risk management strategy and is an excellent read for the people in financial domain who face the challenge of effectively figuring and dealing with risks within the organisation.
Risk Management And Financial Institutions
This book can be considered as more of an industry-specific guide for risk identification and mitigation. The book explores and discusses various risks which different organisations may face and then starts dwelling more in-depth into the possible risk management strategies they can implement. The author later explains the complexity of risk any financial institution may meet, and how risk management can be a useful precaution against the same.
The Essentials of Risk Management
Drawing lessons from the financial crisis which occurred in the year 2018, The Essentials of Risk Management speaks about the loopholes and shortcoming in the traditional models of risk management. In this book Michel Crouhy, Dan Galai, Robert Mark explain why the reforms were needed in the financial sector and how the latest models of credit risk assessment as well as enterprise risk management need to be adopted by financial institutions. Aside from this, the author tends to cover topics such as quantitative risk assessment, credit risk rating, operational risk etc.
Practical Methods of Financial Engineering and Risk Management
This book written by Jimmy Skoglund and Wei Chen is more of an advanced approach to risk identification and strategic modelling. Working in the domain the authors have had a deep insight into the challenges faced by financial institutions such as banks, and hence in this book, there is a complete quantitative approach to mitigating such risks and thus saving companies from huge losses. The book aside from discussing things like credit risk, liability risks etc. talks about regulatory frameworks etc. which is of great help for people working in the same domain.
So, these were the top 5 risk management books we would recommend every financial analyst to read. Do let us know if we missed something in the comment section below.
