Risk management & financial institutions.

Summary John Hull's book is essentially devoted to the regulation and management of risks by financial institutions. This book, adapted to European specificities by Christophe Godlewski and Maxime Merli, offers a complete vision of the tools implemented in these institutions to measure and manage risks. Integrating the sovereign debt crisis, this third edition has been considerably revised and enriched, and all its chapters have been updated. In particular, it benefits from: a new chapter on Basel 2.5, Basel III (international agreements on banking regulation) and the Dodd-Frank Act (regulation of the financial markets and protection of American consumers, under the impetus of President Obama), important in-depth studies on: the calculation of the amount of capital, counterparty risk, the method of calculating credit VaR, centralized offsets, the challenges of collateral, the use of Vasicek-type models, and the implementation of the AMA approach to operational risk. The rigor and pedagogy of John Hull, whose manuals such as Options, Futures and Other Derivative Assets are indispensable references, are no longer in need of demonstration. Once again, the link between theory and practice is omnipresent, thanks in particular to the many examples, illustrations and practical cases. The technical points and mathematical demonstrations are deliberately reduced to the essential. Finally, each chapter is concluded by a large number of questions and problems corrected at the end of the book, i.e. over 200 exercises. With this third edition, Risk Management and Financial Institutions becomes the reference book for students and banking professionals who want to have a synthetic and complete vision of this subject.