Risk management has been in place in financial institutions for hundreds of years. However, nowadays, many senior risk managers are confronted with questions about the added value of risk management. Moreover, many of them have the feeling they have to ‘defend’ their work in the institution.

For senior risk managers it becomes increasingly important to formulate value propositions. With this book we aim to help them to identify, assess, formulate and communicate value propositions to their stakeholders.

This book is the result of a comprehensive compilation of blind-peer-reviewed chapters. The chapters in this book are written by principal risk management researchers and risk management practitioners from leading financial institutions. The entire writing process took us approximately 2 years (from the ‘call for chapters’ to arrive at the research results, relevant content, tables, figures, illustrations and cover design). The chapters are written in such a way that it helps the senior risk manager to create more insight in the concepts, methods and tools of risk management. Moreover, we are confident that this supports the senior risk manager to formulate value propositions.

Many people and several institutions supported me to achieve the content required for this book. Special thanks to Ir. Henk de Vries, Drs. Wilfred Geerlings, Drs. Philip Gardiner (NIBC), Michael Bozanic MBA (Fortis Insurance), Joop Rabou RA RE (Rabobank), Drs. Gert Jan Sikking (PGGM), Prof. dr. Fred de Koning RA RE (Nyenrode) and Drs. Patrick Oliemeulen CAIA FRM RV (Insignia) for their valuable insights, texts, being friends and for the constructive discussions we had. Further, I would like to thank the contributors from ABN Amro and ING. Last, but certainly not least, I want to thank my family for their love and support.

Jurgen van Grinsven, Hedel, January 2010