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Informationen zum Autor ERIK BANKS has held senior risk management positions at several global financial institutions, including XL Capital, where he was Partner and Chief Risk Officer of the Bermuda reinsurer's derivative subsidiary, and Merrill Lynch, where he spent 13 years managing credit and market risk teams in Tokyo, Hong Kong, London and New York. Mr. Banks has written various books on risk management, emerging markets, derivatives, merchant banking, and electronic finance. Klappentext A practical approach to ART-an alternative method by which companies take on various types of riskThis comprehensive book shows readers what ART is, how it can be used to mitigate risk, and how certain instruments/structures associated with ART should be implemented. Through numerous examples and case studies, readers will learn what actually works and what doesn't when using this technique.Erik Banks (CT) joined XL Capital's weather/energy risk management subsidiary, Element Re, as a Partner and Chief Risk Officer in 2001. Zusammenfassung A practical approach to ART-an alternative method by which companies take on various types of riskThis comprehensive book shows readers what ART is, how it can be used to mitigate risk, and how certain instruments/structures associated with ART should be implemented. Through numerous examples and case studies, readers will learn what actually works and what doesn't when using this technique.Erik Banks (CT) joined XL Capital's weather/energy risk management subsidiary, Element Re, as a Partner and Chief Risk Officer in 2001. Inhaltsverzeichnis Acknowledgements ix Biography xi PART I: RISK AND THE ART MARKET 1 1 Overview of Risk Management 3 1.1 Risk and return 3 1.2 Active risk management 5 1.2.1 Risk management processes 6 1.2.2 Risk management techniques 7 1.2.3 General risk management considerations 10 1.3 Risk concepts 12 1.3.1 Expected value and variance 12 1.3.2 Risk aversion 14 1.3.3 Risk transfer and the insurance mechanism 16 1.3.4 Diversification and risk pooling 17 1.3.5 Hedging 20 1.3.6 Moral hazard, adverse selection and basis risk 21 1.3.7 Non-insurance transfers 22 1.4 Outline of the book 22 2 Risk Management Drivers: Theoretical Motivations, Benefits, and Costs 25 2.1 Maximizing enterprise value 25 2.2 The decision framework 29 2.2.1 Replacement and abandonment 31 2.2.2 Costs and benefits of loss control 31 2.2.3 Costs and benefits of loss financing 32 2.2.4 Costs and benefits of risk reduction 35 2.3 Coping with market cycles 35 2.3.1 Insurance pricing 35 2.3.2 Hard versus soft markets 37 2.4 Accessing new risk capacity 42 2.5 Diversifying the credit risk of intermediaries 43 2.6 Managing enterprise risks intelligently 44 2.7 Reducing taxes 45 2.8 Overcoming regulatory barriers 46 2.9 Capitalizing on deregulation 47 3 The ART Market and its Participants 49 3.1 A definition of ART 49 3.2 Origins and background of ART 51 3.3 Market participants 52 3.3.1 Insurers and reinsurers 53 3.3.2 Investment, commercial, and universal banks 55 3.3.3 Corporate end-users 56 3.3.4 Investors/capital providers 57 3.3.5 Insurance agents and brokers 57 3.4 Product and market convergence 58 PART II: INSURANCE AND REINSURANCE 61 4 Primary Insurance/Reinsurance Contracts 63 4.1 Insurance concepts 63 4.2 Insurance and loss financing 64 4.3 Primary insurance contracts 65 4.3.1 Maximum risk transfer contracts 65 4.3.2 Minimal risk transfer contracts 66 4.3.3 Layered insurance coverage 76 4.4 Reinsurance and retrocession contracts 78 4.4.1 Facultativ...
