The concept of risk management serves as the unifying theme. A bank´s asset and liability management committee (ALCO) or risk management committee is responsible for the overall financial planning and management of the bank´s profitability and risk profile. The book emphasizes how managers can develop and implement strategies to maximize stockholders wealth by balancing the trade-off between banking risks and returns. One of the book´s primary purposes is to explain how market risk (interest rate risk, equity price risk, and foreign exchange rate risk), liquidity risk, credit risk, capital/solvency risk and operational risk are measured and how decisions to alter a bank´s risk profile affects profitability and growth opportunities. The book demonstrates how risk management decisions in different areas affect each other and the overall profitability and risk of the institution.