As performance measurement in financial institutions moves progressively away from traditional measures and towards the objective of shareholder value creation, finance professionals now need to understand many new drivers of performance which are unfamiliar to them. Risk professionals must also be aware of how measures of risk integrate with financial and operational drivers of the new measures of performance.
In the spirit of enterprise risk management, you will benefit from an integral treatment of the three pillars of internal performance measurement in a financial institution:
* Funds transfer pricing
* Economic capital
* Expense allocation
You will get a look at Basel II from the perspective of improved financial and operational performance. Furthermore, you will be introduced to the concept of ’balanced scorecards’, a new approach of balancing financial and non-financial drivers of performance.
This practical new title addresses segment reporting and examines the issues and pitfalls of comparing performances across units and institutions as well as factors related to performance and compensation in financial institutions, which are rarely found in this type of literature.
Focusing on internal business unit performance, this in-depth reference handbook will enable you to successfully measure and control performance. It is recommended for chief financial officers, treasurers, financial analysts, accountants, chief risk officers, risk managers, auditors and management consultants engaged in financial consulting to financial institutions.
- Publish date
- 2 Oct 2006
- 155mm x 235mm
Table of contents
1. Improvement of Risk-adjusted Performance through Active Credit Portfolio Management of SME Exposures: basic concepts
2. Performance Measurement when a SME bank is engaged in Active Credit Portfolio Management: Transfer Pricing of Credit
3. Modelling and Measuring Performance of Indeterminate Deposits
4. The Fundamentals of Economic Capital
5. The Fundamentals of Funds Transfer Pricing
6. Risk-adjusted Performance of Credit Products and Credit-based Relationships
7. Expense Allocation
8. From Financial Performance Measures to Balanced Scorecards