Financial Darwinism: create value or self-destruct in a world of risk

Abstract

Foreword. Preface. Acknowledgments. Chapter 1: Understanding and Navigating the Financial Revolution. Introduction: The Need for Transformational Thinking. From George Bailey to the Golden Age. Accounting for Profits the Old Fashioned Way. The Great Moderation As An Evolutionary Catalyst. Economic Performance in the Dynamic New World. Pressures on Static Business Models. Dynamic Finance Perspective on Financial Crises. Pillars of Strategic Decision Making. Value Creation Through Dynamism and Business Model Transformations. Beyond the Facade: The Importance of Risk-Based Transparency. Chapter 2: The Old Regime and its Demise. Economic Performance and Viability of Financial Institutions. Static Business Models. Dominant Forces: The Future That Has Already Happened. Pressures on Static Business Models. Chapter 3: The Dynamic New World. Risk-Based Economic Performance. Balance Sheet Arbitrage Principal Investments. Systematic Risk Exposures. Fees and Expenses. Capital Structure Optimization. Economic Performance Attribution. Chapter 4: Business Model Transformations. Pillars of Strategic Decisions in a Dynamic World. Responsive Recalibrations of Business Models. Full-Scale Business Model Transformations. Making the Strategic Vision a Reality. Chapter 5: The Road to Financial Darwinism. Real-World Business Model Transformations. Stakeholder Communication & Equity Valuation in a Dynamic World. Economic Value Creation (and Destruction) by Non-Financial Corporations. The Infamous Carry Trade and the Old Ways of Thinking. A Dynamic Finance Perspective on Modern Financial Crises. Beyond the Facade: The Need for Risk-Based Transparency. Conclusion. Epilogue: Financial Darwinism and the Crisis of 2007-2008. Appendix A: The Risk-Based Economic Performance Equation. Appendix B: A Case Study in Dynamic Finance. Notes. References. About the Author. Index.