The uncertainty of the real world takes center stage when an unforeseen incident changes our way of life. But taking action then and there is too late, significantly more if you don’t know what to do. Knowing risk management is necessary to tackle such uncertainty and mitigate its harm. This is why we’ve listed the best risk management books out there.
This article will discuss the books that have done justice to risk management. We’ve done a lot of research and spent many hours finding the best books for you. We did this so that you don’t have to. So, what are you waiting for? Let’s dive into the article.
List of the 5 Best Risk Management Books
Here we’ve curated a list of five of the best risk management books. These books discuss risk management facets, from handling financial instruments to unsecured lending. These books strive to give you a deep knowledge of how to hedge against uncertainty and make your portfolio crisis-proof.
1. Unsecured Lending Risk Management By Frank Tian
This book employs a consumer credit life cycle perspective to examine the unsecured credit lending market. It discusses the governance and infrastructure for managing risks. On top of that, the book discusses the methods and tools for analyzing and reporting such risks.
The authors’ discussion of analytics approaches and risk management principles impressed us. Portfolio risk management came last after the first stages of opening and maintaining an account. Following that, multiple tactics and topics are discussed via charts and graphs throughout the text.
We recommend every person read the book because it’s essential to understand consumer risk when managing risk. Consequently, we’ve added the book to our list of best risk management books.
2. The Failure of Risk Management By Douglas W. Hubbard
Every risk manager must read “The Failure of Risk Management” because of how well-written the book is. The author explains in detail why risk ordinal scoring, heat maps, RPN, and other soft scoring are ineffective.
He makes the studies conducted in academic and corporate circles understandable. In addition to that, he offers real-world examples to back up his claims.
Furthermore, the author provides an excellent background on risk management beginnings. He covers the many subfields of risk management. Thereafter, you discover which subfield you’re in and what advantages and disadvantages your field offers.
All of this combined to make the book an excellent resource on risk management. This is why we’ve included it in our list of best risk management books.
3. Risk Management and Insurance By Scott Harrington and Gregory Niehaus
For anyone with an interest in risk management, this is a must-read textbook. This comprehensive guide to risk management delves into everything from the fundamentals of insurance to risk appraisal and pricing. Besides that, the book also details the risks associated with handling different insurance policies.
The book stands apart from similar textbooks because the authors provide concrete examples and case studies from real-world contexts. Since the book is comprehensive and well-written, it’s an excellent resource for novices and experts.
The book is perfect for anyone learning about risk management in the insurance sector. Regardless of whether they wanna join it or not. This is why the book has made it to our list of the best risk management books.
4. Strategic Risk Management By Campbell R. Harvey, Sandy Rattray, and Otto Van Hemert
The book is an updated compilation of the author’s most recent publications on weathering economic storms. It’s pretty helpful to have everything in one place to read. What’s more, an examination of how well these methods worked in the real world has been added.
The authors demonstrated how loss might be mitigated and returns increased by integrating risk management into the investment process. The authors do so to provide us with applicable lessons and techniques for integrating risk management. Compared to most books, the authors highlighted the third moment, i.e., skewness. In contrast to the more commonly used Mean-Variance Optimization.
5. Practical Methods of Financial Engineering and Risk Management By Rupak Chatterjee
Some of the subjects discussed in the books are quite exceptional. They are based on the most recent academic Wall Street expert research. Each chapter in this book can directly apply to a career on Wall Street. Regardless of whether you will work as a quant analyst or a day trader.
The book covers the most fundamental parts of financial instruments to the most complex issues in quantitative finance. The author has done an excellent job of explaining complex ideas in straightforward terms. He has shown how this can be used in the real world. For this reason, we’ve included the book on our list of best risk management books.
You may also read: The 5 Best Portfolio Management Books
Final Words
We conclude this article by saying this risk management is an integral part of every business and individual. Knowing how to mitigate risk can help decrease the effects of uncertainty and help you become successful in your endeavors. We hope our list of the best risk management books helps in your journey to learn more about risk management.