E-Book Overview
The ART of Risk Management
''This book evidences links and trade-offs between some key drivers of corporate value creation: capital structure, strategic definition of core and noncore risks, risk management retention and transfer, with a valuation of externalization, to achieve an integrated allocation and management of firms capital. From math to legal, it takes us a definite step forward in modern finance.'' –Jacques Tierny, Deputy CFO, Michelin Group
''For someone like me who has observed the evolution of financial theory and practice over the past twenty years, Culps new book is a really extraordinary undertaking and accomplishment. On one level, it provides a comprehensive–and quite readable–account of the most important financing and risk management innovations in both insurance markets and capital markets. Even more remarkable is its success in fitting these innovative solutions and products into a single, unified theory of financial markets–one that integrates the once largely separate discipline of insurance and risk management with the current theory and practice of corporate finance.'' –Donald Chew, Editor of Journal of Applied Corporate Finance and a founding partner of Stern Stewart & Co.
''Chris Culp succeeds to cover this multifaceted and somehow fragmented ART market in a holistic way.'' –Thomas Bruendler, President, Allianz Risk Transfer (UK) Limited
''This is indeed a book about convergence. It is dealing with the latest developments in the insurance and capital markets which blur the boundaries between these two areas. Laying the scientific foundations of ART, it also brings together theory and practice of this innovative field in an unprecedented way. Moreover, Culp looks behind the driving forces of ART and relates them back to their common underlying aspiration, the quest for optimal capital structure.'' –Paul Woehrmann, PhD, Head of Center of Excellence ART and Member of Executive Management Continental Europe Corporate, Zurich Financial Services
''Culp divulges the true nature of convergence–as art and science, rooted in both traditional theories and forward-looking practices. He demonstrates undeniably that the marriage of the insurance and capital markets, once considered futuristic, is a pragmatic solution for corporations seeking to manage risk, generate capital, and create new value.'' –Tobey Russ, President & CEO, Chubb Financial Solutions
E-Book Content
The ART of Risk
management Alternative Risk Transfer, Capital Structure, and the Convergence of Insurance and Capital Markets
CHRISTOPHER L. CULP
John Wiley & Sons, Inc.
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CCC-Culp FM (i-xvi) 2/8/02 3:43 PM Page i
Additional Praise for The ART of Risk Management “Finally, a book that gets the fundamentals of alternative risk transfer down and, at the same time, explores the current innovations in the real world used by real risk managers, CFOs and insurers. I highly recommend it.” —Tom Skwarek Principal, Swiss Re “Culp shows us that there is, after all, a captivating way to explain corporate finance, risk management, and alternative risk strategy. Everyone involved in creating value or managing risk, from apprentice to Chairman, should read this book.” —Norbert G. Johanning Managing Director, DaimlerChrysler Capital Services “By integrating capital theory and risk management into the orthodox theory of corporate finance, Christopher Culp has created a new, more comprehensive theory of corporate finance. This innovative treatise allows us to understand why the capital and insurance markets are converging at record speed. More importantly, it sheds a great deal of light on how new products can be used to effectively play the alternative risk management game.” —Steve H. Hanke Professor of Applied Economics, The Johns Hopkins Univ