Risk Management in Finance: Six Sigma and Other Next Generation Techniques
- 6h 26m
- Anthony Tarantino, Deborah Cernauskas
- John Wiley & Sons (US)
- 2009
The global financial crisis that began in 2007 begs the question: with all the progress in risk management, why were the world's leading financial service firms, their regulators, their auditors, and their rating agencies so wrong in their assessment of the inherent risks in the subprime mortgage market? These internationally recognized organizations caved in to clearly flawed conventional wisdom and accepted quantitative and qualitative models. Lured by the promise of lucrative returns, they followed their peers right off the cliff. Those who survived the crisis mitigated risk by embracing safer, more innovative risk management methods.
Providing a general overview and introduction to such proven quality-control methods as Six Sigma and Total Quality Management (TQM), which are just now finding their way into the financial sector, Risk Management in Finance: Six Sigma and Other Next-Generation Techniques provides the tools to help you sidestep financial disaster.
Focusing on the corporate management of internal processes generally classified as operational risk, Risk Management in Finance provides an examination of control tools and new techniques that are commonly used in other industries but are growing increasingly popular in the financial sector.
Here, you'll discover:
- Statistical process monitoring tools, such as Cusum charts and exponentially weighted moving averages
- New approaches to data management, predictive analytics, Bayesian process controls, and automated remediation controls
- Examples and case studies of implementations of quality financial initiatives from various industries, including Pulte Mortgage, Global Commodities, European Investment Bank, and Ameriprise Financial
- Real-world examples of Six Sigma in financial services
In today's volatile financial environment, only the leaders and innovators can survive. Increase your ability to successfully balance financial risk and reward opportunities with the groundbreaking approaches found in Risk Management in Finance.
About the Authors
Dr. Anthony Tarantino is an adjunct professor, Leavey School of Business, Santa Clara University; codirector of the Sury Center for Risk Management and Computational Finance, University of California, Santa Cruz; Board Director for the Center for Business Innovation in Finance and Investment, Santa Clara University; and former senior adviser to IBM's Governance, Risk, and Compliance Center of Excellence. Dr. Tarantino has nearly thirty years of experience in risk management, regulatory compliance, and business transformation on both the consulting and business side. He became a Six Sigma Black Belt in 2006 and a Certified SOX Pro in 2008. He has written articles for Journal of Operational Risk, the Institute of Industrial Engineers, Accounting Today, the Cutter IT Journal, and the Institute of Supply Management (ISM), and is a frequent keynote speaker and workshop leader for U.S. and international conferences.
Dr. Deborah Cernauskas is Board Director for the Sury Center for Risk Management and Computational Finance, University of California, Santa Cruz; Senior Adviser to the Center for Business Innovation in Finance and Investment, Santa Clara University; and Senior Adviser to IBM's Governance, Risk, and Compliance Center of Excellence. Her career includes time spent in both academia and the industry. She has taught finance at both the graduate and undergraduate levels at several Chicago universities, including Northern Illinois University. Her multifaceted industry experience includes corporate development, operational finance, market research, and commodities trading research.
In this Book
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Risk Management in Finance—Six Sigma and Other Next-Generation Techniques
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Preface
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Introduction
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Data Governance in Financial Risk Management
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Information Risk and Data Quality Management
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Total Quality Management Using Lean Six Sigma
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Reducing Risk to Financial Operations through Information Technology and Infrastructure Risk Management
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An Operational Risk Management Framework for All Organizations
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Financial Risk Management in Asia
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Doing Business in Latin America: Lessons Learned and Best Practices for the Protection of Foreign Investors
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Mitigating Risk Exposure in Transitioning to the IFRS
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Quantitative Operational Risk Management Methods
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Statistical Process Control Integrated with Engineering Process Control
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Business Process Management and Lean Six Sigma: A Next-Generation Technique to Improve Financial Risk Management
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Bayesian Networks for Root Cause Analysis
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Analytics: Secrets to Deriving Business Value and Insights out of Information
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Embedded Predictive Analytics: Transforming Risk Management from Review Function to Competitive Advantage
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Reducing the Financial Risks in Litigation and Legal Discovery
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The Circle of Trust
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Reducing Liability Risk through Best Environmental Practices
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Beyond Segregation of Duties: Next-Generation Techniques in Evaluating User Access Control Risks
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Transaction-Based Cross-Enterprise Risk Management
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Throughput Accounting
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Environmental Consistency Confidence: Scientific Method in Financial Risk Management
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Quality in the Front Office: Reducing Process Variation in Trading Firms
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The Root Cause of the Global Financial Crisis and Corporate Board Reforms to Prevent Future Failures in Risk Management
