Both Accountants and Auditors are confronted daily with challenges associated with the evaluation of credit risk, market risk, and other exposures. The book provides up-to-date information on the most significant developments in risk management policies and practices. Accountants whose work under International Financial Reporting Standards increasingly involves risk control in their job will find this book of practical value with the inclusion of material on "how to" successfully design, implementation and use risk control measures. Designed specifically for accountants the book starts with the fundamental factors underpinning risk: volatility and uncertainty, and then shows how and why accounting, auditing, and risk control correlate. The themes covered in the book include: credit risk, market risk, liquidity risk, investment risk, and event risk.

Key Features

* This practical handbook, complete with case studies is specifically aimed at accountants. * comprehensive information on how to develop, implement and use a risk management system * Covers credit risk, market risk, liquidity risk, investment risk, event risk.


Accountants whose work under International Financial Reporting Standards increasingly involves risk control; Managers and members of risk control operation departments.

Table of Contents

PART ONE: RISK AND THE ACCOUNTING PROFESSION Chapter 1 RISK, VOLATILITY, AND UNCERTAINTY 1. Risk Defined 2. Kinds and Patterns of Risk 3. The Role of Judgment and of Analytics 4. The Science of Risk Management 5. Exposure to Systemic Factors 6. A Policy for Risk Protection Chapter 2 RISK MANAGEMENT AND THE ACCOUNTANT 1. Beyond Classical Accounting 2. Thinking Out of the Box 3. Newton4S pRINCIPLES 4. Pareto’s Law 5. Using Cash Account for Risk Management 6. Tracking Creature Accounting Practices Chapter 3 DUTIES AND RESPONSIBILITIES WITH RISK MANAGEMENT 1. The Accountant’s Mission in Risk Control 2. Quality of Assets and Quality of Management 3. Monitoring Assets and Liabilities 4. Observing Accounting Standards 5. Establishing a Code of Conduct 6. Personal Accountability Chapter 4 ACCOUNTING FOR TOTAL EXPOSURE. A CASE STUDY 1. Total Exposure Defined 2. Staal Bankiers. Case Study on Total Exposure 3. The Need for Understanding Where the Risks Are 4. Dynamic Financial Analysis 5. Organization for Risk Management 6. The Management of Change PART TWO: RISKS TO BE KEPT UNDER CLOSE WATCH Chapter 5 CREDIT RISK 1. Credit Risk Defined 2. Counterparty Risk 3. Credit Policy 4. Credit Limits 5. Credit Risk Management 6. Credit Risk Mitigation Chapter 6 CASE STUDIES ON LOANS THAT CANNOT BE REPA


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© 2008
CIMA Publishing
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About the author

Dimitris Chorafas

Since 1961, Dr Dimitris N. Chorafas has advised financial institutions and industrial corporations in strategic planning, risk management, computers and communications systems, and internal controls. A graduate of the University of California, Los Angeles, the University of Paris, and the Technical University of Athens, Dr Chorafas has been a Fulbright scholar. Financial institutions which have sought his assistance include the Union Bank of Switzerland, Bank Vontobel, CEDEL, the Bank of Scotland, Credit Agricole, Österreichische Länderbank (Bank Austria), First Austrian Bank, Commerzbank, Dresdner Bank, Mid-Med Bank, Demir Bank, Banca Nazionale dell'Agricoltura, Istituto Bancario Italiano, Credito Commerciale and Banca Provinciale Lombarda. Among multinational corporations Dr Chorafas has worked as consultant to top management, are: General Electric-Bull, Univac, Honeywell, Digital Equipment Corp, Olivetti, Nestlé, Omega, Italcementi, Italmobiliare, AEG-Telefunken, Olympia, Osram, Antar, Pechiney, the American Management Association and host of other client firms in Europe and the United States. Dr Chorafas has served on the faculty of the Catholic University of America and as visiting professor at Washington State University, George Washington University, University of Vermont, University of Florida, and Georgia Institute of Technology. Also, the University of Alberta, Ecole d'Etudes Industrielles de l'Université de Genève, and Technical University of Karlsruhe. More than 6,000 banking, industrial and government executives have participated in his seminars in the United States, England, Germany, other European countries, Asia and Latin America.

Affiliations and Expertise