Erin's Summer Reading Recommendation

CUNA CFO Council
June 13, 2008 | COMMENTS

CFO Council Chair Erin Mendez has her summer reading cut out for her. She is brushing up on managing risk and recommends a highly academic book titled Managing Bank Risk, by Academic Press, 2002. It is an introduction to board-base credit engineering by Morton Glantz.

The book describes new credit engineering tools and combines innovative analytic methods with traditional credit management processes. The author provides risk measuring tools that ensure loans are made in accordance with policy and regulatory requirements.

Divided into two sections: “New Approaches to Fundamental Analysis” and “Credit Administration” the book shows readers ways to use the new tools such as “credit derivatives, cash flow computer modeling, distress prediction and workout, interactive risk rating models, and probabilistic default screening.”

The volume is packed with case studies, internet links, a CD-Rom with interactive models, and much more.

“SchoolsFirst FCU is currently implementing more advanced methods of risk management and forecasting loan charge-offs” says Erin . “I am preparing myself and others for their use. The intent” says Erin “is to have the book serve as an internal reference document. Although this is far from pleasure reading, the better informed and able we are to respond to market conditions and improve processes, the better we serve our members.”

Erin Mendez is Senior Vice President of SchoolsFirst FCU, Tustin, California and Chair of the CUNA CFO Council.

> Learn more about the Managing Bank Risk book.