The AMA Handbook of Financial Risk Management

Managing financial risks comes down to understanding how to reduce a complex business environment into workable concepts and models. ''The AMA Handbook of Financial Risk Management'' provides readers with the tools they need for dealing with the most important areas of financial decision making. Filled with strategies, principles, and measurement techniques, the book shows readers how to: categorize financial risks; reduce risks from cash flow and budget exposures; analyze operating risks; understand assessments or risk and return; and, manage risks in capital investment decisions. Providing both explanations and practical applications, the book clarifies the factors that affect the value of a firm, considerations such as time and the proper use of debt, and risks inherent in the capital structure of the firm and the valuation of business combinations. This is a comprehensive guide that enables risk managers and anyone involved in the financial management of an organization to know what factors are at stake and how to protect their bottom line

If you’re involved in the financial management of your organization, you know that every decision you make involves taking careful consideration of what factors are at stake, and protecting your bottom line.In short . . . managing risk.

Proper risk management entails knowing when to go after opportunities that can open up new realms of profit for your business . . . but if you fail to account for the possible, often hidden, pitfalls that can accompany each decision, the consequences could be tremendous.

Filled with strategies, principles, and measurement techniques, this book provides you with the tools you need for dealing with the most important areas of financial decision making. You’ll learn how to reduce a complex business environment into workable concepts and models, and quantify an enormous, constantly changing playing field in a way that allows you to understand and predict possible outcomes and determine how your organization should proceed in any situation.

Providing both explanations and practical applications, the book shows you how to:

• Understand the interrelationship of risk and return

• Manage risks in capital investment decisions

• Categorize financial risks

• Analyze operating risks

• Reduce risks from cash flow and budget exposures

• Determine the value of common stock

• Optimize debt in the capital structure

This comprehensive guide gives you the essential tools and insights you need for managing risk in financial statements, profits, cash flows, capital investments, value of the firm, and capital structure management. The book provides definitions of key terms, examines all the major ideas and concepts necessary to proper financial risk management, and provides step-by-step directions for determining risk and applying proven techniques to achieve favorable outcomes in any given situation. Packed with examples and “how-to” analyses, each chapter contains financial models you can use to make sense of the numbers and provide a framework for making smart decisions.

Authoritative, comprehensive, and clear, The AMA Handbook of Financial Risk Management is the one book that those who make organizational financial decisions should have on their bookshelves.

In this indispensable book from the industry-leading American Management Association, financial expert John Hampton offers game-changing tips for dealing with the most important areas of financial decision-making. Filled with strategies, principles, and measurement techniques, The AMA Handbook of Financial Risk Management shows readers how to categorize financial risks, reduce risks from cash flow and budget exposures, analyze operating risks, understand the interrelationship of risk and return, manage risks in capital investment decisions, determine the value of common stock, and optimize debt in the capital structure. Engaging and detailed explanations and practical applications enable anyone involved in the financial management of an organization to recognize the factors at stake and the solutions that would produce the best organizational outcomes. Managing financial risk boils down to understanding how to reduce a complex business environment into workable concepts and models. This strategic guide shows you how to make these individual decisions with the big picture in mind. Hampton (business, St. Peter's College) offers a reference for financial managers and business leaders to risk evaluation in the areas of financial statements, profits, capital investments, the value of a firm, capital-structure management, and cash flows, and models to address them. The book contains definitions of terms and concepts, examination of major ideas, and step-by-step instructions for applying techniques, with explanations of the relationship of risk and return, categorizing financial risk, analyzing operating risks, determining the value of common stock, and optimizing debt in the capital structure Does it feel impossible to really know what investments will prove to be valuable--and which you should avoid at all costs? This award-winning guide provides leaders the tools they need to make important financial decisions that protect the bottom line.