Managing Extreme Financial Risk

Karamjeet Paul has over 30 years of operating, finance, treasury, and exposure managment experience, giving him unique expertise in identifying and addressing critical risk-exposure-reward and other strategic issues at the highest levels in large organizations. Mr. Paul's perspective has been gleaned from hands-on experience in large global organizations, startups in entrepreneurial settings, and consulting assignments.

• Sustainability Management is CriticalTail Risk As The CulpritNeed For A Distinct Focus on Tail Risk Sole Focus on Risk Management Can Be DangerousUsefulness and Limits of Quant Models If You Can’t Measure It, You Can’t Manage It Simplicity to Counter Complexity of Revenue Models A New Measure For Effective Sustainability Management Continuous Readiness is Critical Effective Sustainability ManagementParadoxical Capital Problem Capital As The Last Defense vs. the First DefenseSustainability Management, Systemic Risk & Regulatory Supervision Convergence of Regulatory Objectives and Institutional Interests Telling Your Story Effectively To Alleviate Marketplace Anxiety Sustainability Management And Risk Governance From The Bane of Revenue Model To A Competitive Advantage

"...develops a simple but still effective framework for handling extreme financial risk. The introduction of the PMLmeasure enables companies to easily incorporate tail risk in their regular risk management and thereby positively contribute to their long-term survival chances." --Financial Markets and Portfolio Management, Managing Extreme Financial Risk"...develops a simple but still effective framework for handling extreme financial risk…focuses on a broad and holistic understanding of the concept rather than on a detailed implementation and problem discussion."--Financial Markets and Portfolio Management, Managing Extreme Financial Risk"When it comes to the tail risk, Karamjeet Paul encourages senior management to shelve quantitative models and address capital sustainability instead. The book has implications for market participants who work with such unknowns as  99.5%-iles of a deal or portfolio profit and loss distributions." - Sergei Esipov, Quant-Isle"Karamjeet Paul makes a convincing case for addressing the fundamental issue of 'tail risk' to protect financial institutions and the financial system. Despite all the talk to 'do something' following the 2008 crisis, the impact of tail risk has not been addressed.  Managing Extreme Financial Risk should be required reading for regulators, board members, CEOs and CFOs of large financial institutions." -Vashishta Bhaskar, Duquesne University"My first impression when I came across Mr. Paul’s book was that it was probably yet one more book by a consultant providing simplistic and not very insightful advice. I was wrong. Mr. Paul is clearly someone who totally understands the dimensions of risk confronting financial institutions, and has thought deeply about it. His message: the only way to survive the next crisis, which can’t be predicted, is to know your extreme-tail risk now and manage it proactively. Drawing on extensive experience (including 14 years at Citicorp where he was once CFO of its global investment bank and where he developed the interest-rate-gap management approach), Mr. Paul eloquently lays out in plain English, free of technical jargon, a new approach to managing extreme-tail risk. Supplemented by real-life stories and analogies, it’s an original and easy read for directors, senior managers and regulators." - Lawrence Baxter, William B. McGuire Professor of the Practice of Law at Duke University