ISBN 9788126523894,Financial Darwinism: Create Value Or Self-Destruct In A World Of Risk

Financial Darwinism: Create Value Or Self-Destruct In A World Of Risk



Times Group Books - New Delhi

Publication Year 2009

ISBN 9788126523894

ISBN-10 8126523891


Number of Pages 172 Pages
Language (English)

Risk assessment

Today's complex economic and financial landscape requires an expanded skill set on the part of finance professionals, executives, regulators, and policy makers. Tilman provides a deep understanding of global macroeconomic forces, a rigorous investment policy, and the command of advanced tools -- all of which are essential to the financial survival of any institution or individual investor. By providing an evolutionary theory that describes the origins, drivers, and implications of the financial shift we are witnessing, Tilman lays the groundwork for understanding how to create an actionable decision-making framework, which he refers to as Financial Darwinism, that will enable financial executives and investors to adapt and thrive. Alternative responses that leverage the power of applied corporate finance, investment analysis, and risk management are discussed. The changing role of executives' strategic vision that encompasses both business and risk-taking decisions are highlighted and implementation strategies that leverage the arsenal of cutting-edge financial tools are explored. This book is the key to understanding, adapting, and succeeding in the ever-changing world of finance. About the Author Leo M. Tilman has been named Young Global Leader of the World Economic Forum for his professional accomplishments, commitment to society and potential to contribute to shaping the world. As the Chief Institutional Strategist and Senior Managing Director at a leading investment firm, Tilman is known for providing institutional clients with advice and solutions regarding strategic decision making, corporate finance, investment strategy, product design, asset/liability management, and risk management. Tilman is also a lecturer in the financial engineering program on foundations of finance at Columbia University. He is co-author of Risk Management and editor of Asset/Liability Management of Financial Institutions, as well as contributing editor of The Journal of Risk Finance. He makes regular TV appearances and is often quoted in the financial media such as The Wall Street Journal, New York Times, Forbes, Bloomberg, and Barron's among others. He earned his B.A. and M.A. degrees from Columbia University. TABLE OF CONTENTS Foreword Preface Acknowledgments Chapter 1: Understanding and Navigating the Financial Revolution Introduction: The Need for Transformational Thinking From George Bailey to the Golden Age Accounting for Profits the Old Fashioned Way The Great Moderation As An Evolutionary Catalyst Economic Performance in the Dynamic New World Pressures on Static Business Models Dynamic Finance Perspective on Financial Crises Pillars of Strategic Decision Making Value Creation Through Dynamism and Business Model Transformations Beyond the Fa'ade: The Importance of Risk-Based Transparency Chapter 2: The Old Regime and its Demise Economic Performance and Viability of Financial Institutions Static Business Models Dominant Forces: The Future That Has Already Happened Pressures on Static Business Models Chapter 3: The Dynamic New World Risk-Based Economic Performance Balance Sheet Arbitrage Principal Investments Systematic Risk Exposures Fees and Expenses Capital Structure Optimization Economic Performance Attribution Chapter 4: Business Model Transformations Pillars of Strategic Decisions in a Dynamic World Responsive Recalibrations of Business Models Full-Scale Business Model Transformations Making the Strategic Vision a Reality Chapter 5: The Road to Financial Darwinism Real-World Business Model Transformations Stakeholder Communication & Equity Valuation in a Dynamic World Economic Value Creation (and Destruction) by Non-Financial Corporations The Infamous Carry Trade and the Old Ways of Thinking A Dynamic Finance Perspective on Modern Financial Crises Beyond the Fa'ade: The Need for Risk-Based Transparency Conclusion Epilogue: Financial Darwinism and the Crisis of 2007-2008 Appendix A: The Risk-Based Economic Performance Equation Appendix B: A Case Study in Dynamic Finance Notes References About the Author Index