The Book of Risk [Hardcover]

Dan Borge (Author)

Book Description

Publication Date: April 16, 2001

Learn the art--and science--of risk management

In this exceptionally lucid, accessible book, one of the most highly regarded industry experts illuminates the delicate process of making decisions in an uncertain world and helps both lay people and professional risk managers understand the role of "risk-management" in their work, their lives, and their businesses. This book will enable professional risk managers to truly grasp the concepts behind their tools, and it will enable their clients (investors) and their coworkers to understand them as well. Handy and easy-to-read, The Book of Risk provides a down-to-earth look at an exciting field that has practical applications for everyone.

Dan Borge, PhD (Clinton Corners, NY), was managing director and partner at Bankers Trust Company. He was with Bankers Trust for the last twenty years and was the architect of the first-ever risk management system implemented institutionally--Bankers Trust's renowned RAROC system. Prior to working at Bankers Trust, he designed airplanes at Boeing. He is an aeronautical engineer and has a PhD in finance from Harvard Business School.

Editorial Reviews

Review

one of the best business books of 2001 (getAbstract , 15 January 2002)

From the Inside Flap

A down-to-earth look at an exciting field for everyone who'd like to shift the odds in the game of life in their favor, The Book of Risk is especially valuable reading for sophisticated investors, entrepreneurs, finance professionals, and managers throughout all industry sectors. It also contains practical applications for professional risk managers interested in gaining a more thorough understanding of the concepts behind the tools they use every day.

Written by one of the most highly regarded experts in the field, The Book of Risk is an exceptionally clear, thoroughly entertaining introduction to contemporary risk management. Dan Borge illuminates the delicate process of making decisions in an uncertain world from a professional risk manager's point of view. Writing with verve and good humor, he breaks the concepts and applications of risk management down into plain English. He describes the techniques professional risk managers use for determining probabilities and ferreting out personal preferences, and then combines them in a way that helps you to take more effective action, increase your chances of positive outcomes, and recognize and seize further financial opportunities. And, most importantly, Dan Borge shows you where in your life-personal or professional-you already act as a "risk manager" and how to adapt risk management methods for achieving your goals and shaping your destiny.

Face it, life is all about change, and the future is always uncertain. Each one of us, in our own way, expends a considerable portion of his or her mental energies each day sizing up odds, weighing risks and benefits, and attempting to avoid negative outcomes. As Dan Borge explains in his lucid, down-to-earth style, you should read this important book "not to become a risk manager, but to become a better risk manager, since we are all risk managers already."

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Product Details

• Hardcover: 256 pages
• Publisher: Wiley; 1 edition (April 16, 2001)
• Language: English
• ISBN-10: 0471323780
• ISBN-13: 978-0471323785
• Product Dimensions: 9.3 x 6.3 x 0.9 inches
• Shipping Weight: 1.2 pounds (View shipping rates and policies)
• Average Customer Review: 3.8 out of 5 stars  See all reviews (6 customer reviews)
• Amazon Best Sellers Rank: #1,055,788 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

9 of 11 people found the following review helpful:

3.0 out of 5 stars Not for finance professionals, September 19, 2001

By 

Bryce Wisan "brycedub" (New York, NY United States) - See all my reviews
(REAL NAME)   

This review is from: The Book of Risk (Hardcover)

According to the Preface, Mr. Borge writes to pique [the reader's] interest in Risk Management. The reader to whom the author is writing is a reader without experience in finance. Indeed, in his effort to avoid the depth or rigor of a risk management textbook, Mr. Borge eliminates much of what a finance professional might find interesting in a book about risk management. Business professionals with a background in finance may find themselves hungry for more substance than the book has to offer.

On the other hand, Mr. Borge successfully describes risk management in terms that individuals without experience in finance will understand. Throughout the book the author applies risk management principles to situations encountered in daily living. These simplified examples give the book a sort of 'Who Moved My Cheese' feel, reinforcing my experience that the book might appeal to non-financial types, while leaving financial-types wanting.

2 of 3 people found the following review helpful:

4.0 out of 5 stars Worth the risk of the purchase price, December 5, 2001

By 

Alessandro Bruno (Toronto, Canada) - See all my reviews
(VINE VOICE)    (REAL NAME)   

This review is from: The Book of Risk (Hardcover)

This book, without a doubt, offers a very clear explanation of the basic principles of risk management. The book concentrates on financial applications and even has a chapter in which he creates a CEO scenario for the reader where the ideas of risk are put into practice. Borge also shows how the same principles may be applied to personal life from the decison to marry to what type of home insurance tp purchase. Borge comes across as very affable and this helps to make the subject matter 'friendly' also. However, I doubt this book was ever intended for finance professionals - though it might be useful in introductory courses on risk management. I also think those looking for more philosophical approaches to the subject (for instance Peter L. Bernstein or Nassim N Taleb) of risk may be somewhat disappointed. At anay rate this book offers sensible advice that avoids easy solutions. In an ideal world this book would be outselling Who Moved My Cheese?

12 of 19 people found the following review helpful:

5.0 out of 5 stars Packed With Knowledge!, June 21, 2001

By 

Rolf Dobelli "getAbstract" (Switzerland) - See all my reviews
(HALL OF FAME REVIEWER)    (TOP 500 REVIEWER)    (REAL NAME)   

This review is from: The Book of Risk (Hardcover)

In a bureaucracy, it's taken for granted that any risk - like any flesh-eating bacteria - is a bad thing. But in a fast-paced environment in which decisions must be made in rapid-fire, risk is not only a constant, it's a primary ingredient to success. So too in your daily life, in which each decision - Do I drive to work or take the train? Do I have a cigarette or use the patch? - ultimately comes down to a weighing of risks versus potential rewards. Dan Borge takes the sophisticated risk-management theories employed by some of the world's smartest companies and boils them down to easy-to-grasp principles that can be used by any business or individual. Some books must be read carefully in order to be appreciated, and this is certainly one of them. Risk management is complex, and despite Borge's skill at getting to the heart of the matter, you'll find yourself mulling over the intricacies of each page of this finely wrought book. We [...] recommend this book to all senior executives, and to any professionals with the potential to join those ranks - provided they make the right decisions.