Risk management has become the cornerstone and essence of all financial and investment decisions. It occurs every day in the financial world. Sound investments and disciplined trading are always required to be implemented within a well-defined risk management framework. This involves identifying the wide gamut of market, credit and operational types of risks, assessing them, and seeking different tools and methods to mitigate these risks for the benefit of the company under review as well as its shareholders.
Like any other worldwide business activity, risk management requires a process with a clear purpose, reliable inputs, welldesignated activities and value-added outputs. The risk management process typically includes such activities as sourcing, assessment/evaluation and quantification and monitoring of risk.
For most kinds of activity, risk is unavoidable as long as the outcome is uncertain. Therefore, taking on risk and handling it is a core management discipline. All major corporate decisions involve choices of how much risk a business can/should take and how best to manage these risks.
Dr Nabil Zaki
Dr Nabil Zaki has been in the investment and banking industry for more than 30 years. During that period, he has assumed senior positions in both corporate finance and treasury with major Wall Street firms and international financial institutions in New York, Canada and the Middle East. He has held high profile management positions with Chase Manhattan Bank, Merrill Lynch, Prudential Securities and Tradition. Currently, Nabil Zaki is an adjunct Professor of Corporate Finance and Derivatives at New York University. He taught at New York Institute of Finance (currently known as FT Knowledge) from 1995 until 2004. He lectures extensively on portfolio management, risk management, derivatives, and international capital markets for major Wall Street firms and financial institutions. Nabil worked as Senior Vice President at both Chase Manhattan Bank as well as Merrill Lynch and in a variety of senior posts in credit and treasury.