Unified Financial Analysis (PDF)

Unified Financial Analysis arrives at the right time, in the
midst of the current financial crisis where the call for better and
more efficient financial control cannot be overstated. The book
argues that from a technical perspective, there is no need for
more, but for better and more efficiently organized information.

The title demonstrates that it is possible with a single but
well organized set of information and algorithms to derive
all types of financial analysis. This reaches far beyond
classical risk and return or profitability management, spanning all
risk categories, all valuation techniques (local GAAP, IFRS, full
mark-to-market and so on) and static, historic and dynamic
analysis, just to name the most important dimensions.

The dedication of a complete section to dynamic analysis, which
is based on a going concern view, is unique, contrasting with the
static, liquidation-based view prevalent today in banks. The
commonly applied arbitrage-free paradigm, which is too narrow, is
expanded to real world market models. The title starts with a
brief history of the evolution of financial analysis to create the
current industry structure, with the organisation of many banks
following a strict silo structure, and finishes with suggestions
for the way forward from the current financial turmoil.

Throughout the book, the authors advocate the adoption of a
'unified financial language' that could also be the basis for a new
regulatory approach. They argue that such a language is
indispensable, if the next regulatory wave - which is surely
to come - should not end in an expensive regulatory
chaos.

Unified Financial Analysis will be of value to CEOs and
CFOs in banking and insurance, risk and asset and liability
managers, regulators and compliance officers, students of Finance
or Economics, or anyone with a stake in the finance industry.