Enterprise Risk Analytics for Capital Markets: Proactive and Real-Time Risk Management
Synopsis "Enterprise Risk Analytics for Capital Markets: Proactive and Real-Time Risk Management"
A Review from "Foreword Clarion."This comprehensive volume by a financial expert acts as a textbook on enterprise risk analytics.Raghurami Reddy Etukuru writes that risk management "must be transformed into something that really manages risk instead of avoiding it." Given recent economic downturns, especially the catastrophic global plunge in 2007-2008, the notion of enterprise risk management, which the author says elevates the focus of risk management "from the tactical to the strategic," seems to be extremely relevant today.This is why Etukuru's book should prove to be mandatory reading for financial managers in banks and other institutions. The author begins with a very thorough discussion of virtually every kind of financial product--bonds, derivatives, equity derivatives, option strategies, interest-rate derivatives, foreign exchange derivatives, credit derivatives, repo-style transactions, commodities, securitized products, and other derivatives. He then covers the fundamentals of quantitative finance in considerable detail, following this with chapters on market risk analytics, counterparty credit risk analytics, liquidity risk management, risk data aggregation and reporting, and information and risk architectures.While Enterprise Risk Analytics is highly technical and intended for an informed professional audience rather than the general public, it is written in simple, straightforward language. Much credit is due Etukuru for avoiding financial jargon to the extent possible and writing in a clear and cogent manner. It is obvious that the author has both broad and deep knowledge of the subject matter and that he is comfortable discussing complex concepts; in fact, this volume could undoubtedly serve as an undergraduate and graduate level textbook.In addition to being very well written and organized, the page design of Enterprise Risk Analytics makes it easy to digest. The type is a good size and there are numerous subheads. Subsections within each chapter are numbered in order of importance; for example, in chapter 3, "3.1 Statistical Measures" is followed by "3.1.1 Mean, Median, and Mode" and "3.1.2 Standard Deviation." This scheme allows easy reference to a specific topic. The only deficiency is the fact that the numerous mathematical formulas included in the text are too tiny; they should have been reproduced at a much larger size to be readable.Included at the end is a thorough glossary, which is helpful; however, the book would have been even stronger if it had a bibliography and an index. The cover design is somewhat ordinary, but the author's biography on the back cover attests to Etukuru's considerable expertise.Students and professors of risk management, as well as risk management professionals, should find Enterprise Risk Analytics to be of great value in understanding the evolution of risk management.
