Value and Capital Management - (Wiley Finance) by Thomas C Wilson (Hardcover)

Book Synopsis

The Value Management Handbook is a comprehensive, practical reference written specifically for bank and insurance valuation and value management. Spelling out how the finance and risk functions add value in their respective spheres, this book presents a framework for measuring - and more importantly, influencing - the value of the firm from the position of the CFO and CRO. Case studies illustrating value-enhancing initiatives are designed to help Heads of Strategy offer CEOs concrete ideas toward creating more value, and discussion of "hard" and "soft" skills put CFOs and CROs in a position to better influence strategy and operations. The challenge of financial services valuation is addressed in terms of the roles of risk and capital, and business-specific "value trees" demonstrate the source of successful value enhancement initiatives.

While most value management resources fail to adequately address the unique role of risk and capital in banks, insurance, and asset management, this book fills the gap by providing concrete, business-specific information that connects management actions and value creation, helping readers to:

• Measure value accurately for more productive value-based management initiatives and evaluation of growth opportunities
• Apply a quantitative, risk-adjusted value management framework reconciled with the way financial services shares are valued by the market
• Develop a value set specific to the industry to inspire initiatives that increase the firm's value
• Study the quantitative and qualitative management frameworks that move CFOs and CROs from measurement to management

The roles of CFO and CRO in financial firms have changed dramatically over the past decade, requiring business savvy and the ability to challenge the CEO. The Value Management Handbook provides the expert guidance that leads CFOs and CROs toward better information, better insight, and better decisions.

From the Back Cover

Value and Capital Management shows CFOs and CROs at banks and insurance companies how to add value to their organizations through better information, better insight, and better decisions.

This cutting-edge guide empowers the newly evolved roles of today's financial and risk officers in financial services firms by providing them with a savvy framework for linking management actions to shareholder value creation. In connecting theory to practice, the book very clearly spells out how the finance and risk functions add value in their respective spheres of influence. The book includes concrete ideas for increasing their value add within the context of the individual business, as well as the corporate portfolio. Insightful "value trees" tailored to banking and insurance give CFOs and CROs an advantage when challenging CEOs and allow CEOs to understand their businesses through a "finance and risk lens", illuminating the role of risk and capital in delivering sustainable operating profits and growth. Practical balance sheet and capital management frameworks, including the Capital Budget, reinforce corporate strategy by determining which businesses to grow, which to harvest and which to fix or exit. Master the complexities of risk and capital in your firm's value by:

• Applying a quantitative, risk-adjusted value management framework reconciled with the way financial services shares are valued by the market to optimize business strategy and the corporate portfolio
• Identifying segment specific capabilities and "rules of the game" that increase the firm's value
• Developing the capital allocation, balance sheet man- agement and risk management capabilities needed to execute the strategies and move CFOs and CROs from measurement to management

Generating shareholder returns and satisfying customers by assuming risk is part science and part art, which is why banking and insurance executives need the holistic guidance written just for them in Value and Capital Management.

About the Author

THOMAS C. WILSON is the chief risk officer for Allianz Group, where he is responsible for global risk controlling and risk management policies and guidelines. He has spent nearly 30 years working in finance and risk for such companies as UBS, McKinsey & Company, Swiss Reinsurance, Oliver Wyman & Company, and ING.