Risk Management and Value Creation in ... - Arabictrader.com

328 INDEX
Risk, liquidity, 3, 165
Risk management:
active, 27–28, 42, 193
activities, 9, 78, 82, 88, 126, 131,
239, 259, 278
as purely financial transactions,
63
and value creation, 6, 9, 30, 43, 58,
74, 287
approach(es), 3, 39–42, 124, 289
as (distinct) process, steps, 26
as black box, 56
as empirical fact, 287
as not experiencing negative events,
56
as organizational unit, 25, 28
as strategic weapon, 55
as substitute to equity/capital, 4,
112, 123, 126
as substitute to publication of
internal information, 115
at the bank or firm level, 57–58,
66, 71, 73, 78, 115, 121, 124,
129, 137, 287–289. See also
Risk management, corporate
at the level of individual investors,
9, 58, 60, 64, 66, 69
benefits of, 30, 81–82, 90, 96, 121
by asset allocation, 60, 68–69, 103
by diversification, 42, 60, 62, 65,
103
central role of, in banks, 30, 42, 48
concern with, 29, 100, 123
condition for:
necessary but not sufficient, 56,
116, 287
sufficient, 56, 58, 287
corporate, 39, 43–44, 55, 57–58,
61, 65–66, 69–71, 90, 120,
123–124, 129, 134, 244, 287–
288
benefits, 79, 81
dimension, 65
incentive for, 84
on behalf of the investor(s), 60
rationale for, 6, 78, 112
culture, 246
decision(s), 2, 5, 61, 71, 77, 85,
236, 274, 280, 288–289, 291
definition of, 25
degree of, 142, 166
discrepancy between theory and
practice, 6, 287, 290
efficiency of, 2
forms of, 137, 150, 289
function(s), 3, 26, 138, 140
goal(s) of, 9, 27, 31–34, 38–39, 74,
120, 166
home-made, 64, 77, 112, 121
in banks, 3, 5–6, 9, 23, 28, 30–31,
39, 48, 55, 104, 122–123, 274,
276, 280, 286–287, 291
in practice, 3, 6, 34, 44, 55–56, 72,
91, 198, 251, 287
instruments, 9, 38, 42–46, 66–67,
150, 273, 276, 278, 289
irrelevance (proposition), 57, 63–
72, 74, 77, 136, 276, 288
mechanics, 131
normative theory for, 6, 48, 57, 73,
129, 269, 274–275, 280–281,
286–287, 289, 291
objective of, 30, 77
positive theory for, 3, 5, 48, 55,
287
proposition(s), 130
rationale for, 30, 58, 72, 78, 81,
84, 100, 105
redundancy of, 61, 72, 104
replication of, 2, 37, 57, 61, 64, 69,
72, 74, 121, 288
reversing, 2, 57, 68, 288
scenario(s), 65–71
set of actions, 39–42
skills, superior, 42, 73
strategy, 31–32, 38–39, 46, 48, 70,
88, 91, 103, 116, 120, 129,
131–132, 136
subjective view of, 73
techniques, state-of-the-art, 47, 130
through changes in operations, 65,
68–69, 71, 130
through financial instruments, 56,
61, 65–66, 69, 140