Value and Capital Management

"Drawing on his rich experience as CRO in insurance, reinsurance and banking, Thomas Wilson provides a fascinating perspective on how CFOs and CROs create value for the firm, the customers and the shareholders by better managing capital and risk. The handbook offers a lot to many from mathematical and technical foundations to strategic advice, from real–world examples to historical background, from challenges to solutions. It not only gives insights for risk and finance professionals, directors and regulators, but will also and this is important inspire students to pursue a career in financial services." Walter Kielholz, chairman of the supervisory board, Swiss Reinsurance "Managing for value is not easy in the best of times. It is even more challenging given the fast–paced and fundamental changes affecting banking and insurance today, including new regulations, unprecedented low interest rates, weak global economic development and the emergence of non–traditional competitors. Tom′s handbook represents a valuable and practical anchor for managing value and capital in banking and insurance, which currently faces a torrent of change." Paul Achleitner, chairman of the supervisory board, Deutsche Bank "Financial firms build inventory on their balance sheets instead of selling from inventory, causing long balance sheets and inventory risk; in addition, financial products represent an inherent promise, sometimes far in the future, which may not always be possible to fulfill. Post crisis, financial institutions have learned the hard way the importance of aligning returns, capital requirements and risk acceptance. In this industry, valuation is complicated and must be looked at critically. Aligning returns, capital and risk is essential; three important challenges addressed by this handbook." Koos Timmermans, vice chairman, ING Bank "Capital is the gasoline that keeps risk and balance sheet intensive businesses on the