A Word of Greeting  V
Preface VII
Part 1: Bank Risk Management
Basel II and the Effects on the Banking Sector  3
Thomas Hartmann-Wendels, Peter Grundke and Wolfgang Sprk
Conflictsof Interest and Market Discipline in Financial Services Firms 25
Ingo Walter
Risk Management and Value Creation in Banks  53
Gerhard Schrck and Manfred Steiner
The New Basel Capital Accord  79
Claudia Holtorf, Matthias Muck, and Markus Rudolf
Value at Risk: 
Regulatory and Other Applications, Methods, and Criticism  99
Alois Paul Knobloch
Parsimonious Value at Risk for Fixed Income Portfolios  125
John F. O. Bilson
Risk Budgeting with Value at Risk Limits  143
Robert Hrtl and Lutz Johanning
Value at Risk, Bank Equity and Credit Risk  159
Jack E. Wahl and Udo Broll
Parametric and Nonparametric Estimation of Conditional 
Return Expectations  169
Wolfgang Drobetz and Daniel Hoechle
Credit Risk Portfolio Modeling: An Overview  197
Ludger Overbeck
Evaluating Credit Risk Models  219
Hergen Frerichs and Mark Wahrenburg
Estimation of Default Probabilities and Default Correlations  239
Stefan Huschens, Konstantin Vogl, and Robert Wania
Managing Investment Risks of Institutional Private 
Equity Investors C The Challenge of Illiquidity 259
Christoph Kaserer, Niklas Wagner and Ann-Kristin Achleitner

XII     Brief Table of Contents
Assessment of Operational Risk Capital  279
Carol Alexander
Operational Risk: The Management Perspective  303
Wilhelm Kross
Part 2: Insurance Risk Management
Catastrophic Events as Threats to Society: 
Private and Public Risk Management Strategies  321
Martin Nell and Andreas Richter
New Approaches to Managing Catastrophic Insurance Risk  341
Ulrich Hommel and Mischa Ritter
Alternative Risk Transfer  369
Christopher L. Culp
The Challenge of Managing Longevity Risk  391
Petra Riemer-Hommel and Thomas Trauth
Asset/Liability Management of German Life Insurance Companies: 
A Value-at-Risk Approach in the Presence of Interest Rate Guarantees 407
Peter Albrecht and Carsten Weber
Part 3: Corporate Risk Management
Risk Management, Corporate Governance and the Public Corporation 423
Fred R. Kaen
Integrating Corporate Risk Management  437
Christian Laux
Value-Based Motives for Corporate Risk Management  455
Ulrich Hommel
Value-based Corporate Risk Management  479
Werner Gleiner
Statutory Regulation of the Risk Management Function in Germany: 
Implementation Issues for the Non-Financial Sector  495
Jrgen Weber and Arnim Liekweg
A Comprehensive Approach to the Measurement of 
Macroeconomic Exposure  513
Lars Oxelheim and Clas Wihlborg
Foreign-Exchange-Risk Management in German 
Non-Financial Corporations: An Empirical Analysis  537
Martin Glaum 

Brief Table of Contents      XIII
Estimating the Exchange Rate Exposure of US Multinational Firms:
Evidence from an Event Study Methodology  557
Kathryn L. Dewenter, Robert C. Higgins and Timothy T. Simin
International Corporate Risk Management: 
A Comparison of Three Major Airlines  571
Matthias Muck and Markus Rudolf
Corporate Risk Management: Real Options and Financial Hedging 591
Alexander J. Triantis
The Real Option Value of Operational and Managerial Flexibility 
in Global Supply Chain Networks  609
Arnd Huchzermeier
Managing Acquisition-Related Currency Risk Exposures: 
The E.ON-Powergen Case  631
Stefan Hloch, Ulrich Hommel, and Karoline Jung-Senssfelder
Introducing New Risk Classes to Organized Exchanges: 
The Case of Electricity Derivatives  651
Christian Geyer and Werner G. Seifert
Was Enrons Business Model Fundamentally Flawed? 671
Ehud I. Ronn
Real Risk Management
Opportunities and Limits of Consumption-based Strategies  679
Wolfgang Breuer and Olaf Stotz
Capacity Options: Convergence of Supply Chain Management
and Financial Asset Management   699
Stefan Spinler and Arnd Huchzermeier
Part 4: Systemic Issues of Risk Management
The Key to Risk Management: Management  721
Adrian E. Tschoegl
Economic Risks of EMU  741
Michael Frenkel and Paul McCracken
Does Risk Management Make Financial Markets Riskier?  765
Ian R. Harper, Joachim G. Keller, and Christian M. Pfeil
Risk Management, Rational Herding and Institutional Investors: 
A Macro View  785
Torben Ltje and Lukas Menkhoff
Revitalization of Japanese Banks C Japans Big Bang Refor 801
Mitsuru Misawa