Demonstrates complete overview of risk‐adjusted performance measurement (RAPM) and how it can be a key management tool – particularly when combined with an economic capital allocation framework. Discusses RAPM and how it would enable senior management to allocate economic capital more...

States that, to build an asset and liability management (ALM) model is a large and crucial project giving the choice of self‐build or to purchase an established model. Gives pros and cons for both choices and says that it may depend on the individual bank as to which one is the best. Posits...

Investigates Internet‐related changes taking place in the financial world – particularly in treasury systems. Looks at web/com enabling and server‐based thin client in depth, as these are the two main thrusts in e‐commerce. Looks at the relevance for treasury systems including cash...

Documents a joint venture between PricewaterhouseCoopers and the London School of Economics with regard to changes facing risk management. Chronicles that risk management is in its infancy, but that there are things that can be counted, measured and put away with banks and insurance companies to...

Reports on recent unsettled years in the group risk market and the steady period of recruitment in investment and retail banks. Suggests that the best ways to retain staff are: creation of better defined career paths; increased challenges and responsibilities given candidates; and increased...

Looks at how major companies have benefited from investing in e‐commerce and recommends all businesses should follow their lead. Examines the rise in dot.com shares in the USA and the UK and how there is no sign of this interest waning but that, for some considerable time to come, general...

Reports on e‐business and its boom in the financial sector and the criteria required to meet rules laid down by the Financial Services Authority (FSA). Presents FSA requirements as follows, regarding “operating” in the UK: targeting UK residents; head office/egistered office located in the...

Outlines how Landesbank Baden‐Württemberg (LBBW) chose its new risk management software and the criteria required by the provider. Describes how three banks merged in January 1999 to become LBBW and how it is now one of Germany’s largest and most prestigious banking groups. Investigates the...

In this article Terry Simister explains the background behind the initiative led by the Institute of Risk Management to establish recognised British and International standards for the practice of risk management. He discusses the historical development of the concept of risk management and how...

In this paper we attempt to address, in a non‐technical way, the basic assumptions underlying option pricing theory and point out some of the inherent weaknesses they imply in the reliability of the resulting valuations. We present several concrete examples to illustrate the impact of the...