Dangerous Markets: Managing in Financial Crises (Wiley Finance)

A corporate guide to crisis management in volatile financial markets Current financial crises in Argentina, Japan, and Turkey are being played out on the front pages of newspapers, and these are just the most recent financial crises that have rolled across the globe in the last decade and whose far-reaching impact hurts business around the world. Dangerous Markets: Managing in Financial Crises recognizes that no global corporation or financial institution can afford to ignore the potential of a financial storm and will help top management and financial professionals navigate through this often disastrous maze. While many books discuss financial crises and their ramifications, none has presented an action plan for managing these storms--until now. Dangerous Markets: Managing in Financial Crises presents a method that allows executives and financial professionals to recognize the warning signs of a financial crisis and act appropriately before the situation spirals out of control. Based on years of research and practice in cleaning up the mess, McKinsey consultants Barton, Newell, and Wilson reveal the warning signs of potential financial catastrophes and provide unique principles that can be followed to shape and manage a strategy for survival. Preface -- Why Manage Financial Crises Proactively? -- Why We Wrote Dangerous Markets -- Introduction To Dangerous Markets ; Financial Storms Are Destabilizing ; Financial Crises Can Be Understood, Anticipated, Managed, And Prevented ; What This Book Is And Is Not ; Who Needs To Read Dangerous Markets? -- Part I: Understanding Financial Crises -- Recognizing New Global Market Realities ; Increasing Risk Of Financial Crises ; Why Financial Crises Are On The Rise ; You Can Run, But You Can't Hide From Crises ; Looking Ahead -- Using Crisis Dynamics To See Growing Risks ; The Chronology Of A Crisis ; The Dynamics Of A Financial Crisis ; The Corporate Sector : Assessing Value Destruction ; The Financial Sector : Banks In Distress ; Understanding The Impact Of Macroeconomic Catalysts, Foreign Funding, And Asset Bubbles ; Conclusions And Outlook For Future Crises ; Ten Warning Signs Of A Financial Crisis ; Estimating Value Destruction In The Economy ; Why Corporate Sectors Underperform In Crisis Economies -- Part Ii: Earning The Right To Win -- Managing The First Hundred Days ; Taking Five Tactical Steps When A Crisis Hits ; Developing A Crisis Management Approach ; Managing The Ceo Agenda ; Painting The Picture Of A Financial Crisis ; How Companies Can Strengthen Funding Before A Crisis ; Using Scenario Planning In Financial Crises -- Capturing Strategic Opportunities After The Storm ; Recognizing Significant Opportunities In A Crisis ; Moving From Boundaries To Greater Degrees Of Freedom ; Executing Successfully To Capture Crisis Opportunities ; Leveraging Strategic Opportunities In Financial Crises : The Successful Story Of Ncnb -- Part Iii: Managing Unique Banking Risks -- Driving Successful Bank Turnarounds ; Ensuring Turnaround Success : Seven Management Actions ; Mellon Bank's Successful Turnaround ; Christiana Bank's Successful Turnaround ; Filanbanco's Failed Turnaround ; Government Stewardship Of Troubled Banks ; Government's Role In Bank Turnaround Strategies ; Building A Rationale For Official Support In A Financial Crisis -- Minimizing Costs Through Npl Recovery Excellence ; Developing World-class Npl Recovery Capabilities ; Special Issues Raised When Npls Are Managed By Governments ; Management Lessons : Good Banks/bad Banks In Scandinavia -- Part Iv: Building For The Future -- Strengthening System Safeguards ; Moving To Global Standards For Corporate Governance ; Adopting Better Accounting Standards ; Developing Capital Markets ; Resetting Regulatory Regimes ; Building An Effective Legal Foundation ; Sixteen Elements Of Good Corporate Governance ; Singapore's Development As An International Financial Center ; The Discipline Of The Market For Corporate Control : Issues For Ceos -- Designing A New, Market-driven Financial Architecture ; Recognizing The Limitations Of Current Standards And Approaches ; Enhancing The Private Sector's Role In Setting Standards To Reduce The Risk Of Future Crises ; Fsf Compendium Of Standards. Dominic Barton, Roberto Newell, Gregory Wilson. Series From Jacket. Includes Bibliographical References (p. 277-292) And Index. In a world of increasing financial globalization, the impact of financial crises can have far-reaching effects -- entire financial systems collapse, companies go bankrupt, government debt increases, unemployment explodes, and social unrest typically mounts. For these and many other reasons, financial crises have become too costly to shareholders and societies to leave unmanaged. The fact is that investors, CEOs, top-level executives, and even governments can no longer assume a wait-and-see position; they must manage financial crises proactively to successfully navigate through these financial storms. Whether you're an investor looking to avoid losses, an executive managing a company, or a public official thrust into a financial crisis, Dangerous Markets: Managing in Financial Crises is the first crisis management guidebook that comprehensively addresses the unique challenges posed by financial crises. Written from a practitioner's microeconomic perspective, Dangerous Markets draws upon McKinsey & Company's extensive client work and global research as well as the practical crisis management experience of experts Dominic Barton, Roberto Newell, and Gregory Wilson.Through real-world case studies and professional perspectives, this book will show you how to anticipate and manage a financial crisis as well as how to prosper during this chaotic period. Divided into four equally informative parts, Dangerous Markets covers a wide range of financial crisis topics and offers proven advice for a number of potentially hazardous situations. With the right combination of vision and strategy it is possible to anticipate and manage in a financial crisis. Filled with valuable insights and recent foreign and domestic examples, Dangerous Markets is a flexible road map that provides practical solutions and actionable strategies. Financial crises are indiscriminate and sometimes inevitable. Many individuals, institutions, and governments were unprepared for events such as the 1997 Asian crisis or the 1998 Russian debt default. Don't get caught up in the whirlwind of the next financial crisis. Pick up Dangerous Markets and be prepared to act, rather than react. On January 1, 1997, South Korean President Y.S. Kim proudly announced that the nation's economy had grown by 7.1 percent in 1996.