Risk Books Adapting to Basel III and IV: Re-engineering capital, business mix and performance management practices post-crisis

As a result of Basel III and IV, and Solvency II, all financial institutions will have to re-think their business planning and strategic management practices whilst also trying to meet their income needs. Adapting to Basel III and IV examines how the financial sector is tackling these challenges, drawing on a variety of examples from the banking and insurance industries. Bogie Ozdemir provides a balanced combination of both hands-on experience and theoretical reasoning. The author demonstrates how best to implement these regulations on a practical level, explaining the organisational (re)alignments to ensure that the necessary changes are made. The book equips the reader with the tools to enhance their capital management and business mix optimisation processes in order to cope with the rigors of the new regulatory landscape, with key topics including: The evolution of economic capital measurement and management Current practices and their shortcoming Integrated capital management Procyclicality management Table of contents: Introduction 1. Environmental Forces: Economic Instability, Low Interest Rates, Change in Demographics, Continuing Regulatory Changes and Digital Evolution 2. Current Practices and their Shortcomings in Risk, Capital, Business-mix and Performance Management 3. Evolution of Economic Capital Measurement and Management 4. Integrated Capital Management: ICAAP and ORSA 5. Procyclicality Management: Developing a Coherent Risk Framework for Risk Management, Capital Management, Stress Testing and IFRS 9 Purposes 6. Capital Optimisation and Business-mix Management 7. Performance, Profitability Management and Hurdle Rate 8. Optimal Management of the Interest Rate Risk in the Banking Book 9. Prudent LGD Estimation for Mortgages 10. Developing and Implementing Effective Fintech Strategies 11. Implementing IFRS 9 by Adapting AIRB Models 12. Organisational (Re)alignment