Over the last fifty years, increasingly sophisticated risk measurement and management techniques have revolutionized the field of finance. More recently, the globalization of financial markets and policy changes in the regulation of financial institutions have impacted upon how commercial banks manage risk.

Contributors to the Conference. Part I: Introduction by Marshall Sarnat. Part II: Risk Management in Banking: An Overview. 1. Bank Risk Management: Theory; D.H. Pyle. 2. Risk Management in Banking: Practice Reviewed and Questioned; A.M. Santomero. Part III: Managing Market and Credit Risks. 3. Introduction to VAR (Value-at-Risk); Z. Wiener. 4. A Comparison between the BIS `Standardized Approach' and the `Internal Models Approach'; M. Crouhy, et al. 5. Evaluating Credit Risk: An Option Pricing Approach; M. Crouhy, et al. 6. Non-Linear Value-at-Risk; M. Britten Jones, S.M. Schaefer. Part IV: Market Risks: The 1996 Basle Accord. 7. A Critique of the Basle Regulation, or How to Enhance (Im) Moral Hazards; G. Szego. 8. The Implementation in the UK of the Basle Accord Regarding Market Risk; C. Smout. Part V: Problems in Financial Regulation. 9. Recent US Experience in Regulating Financial Risk; J. Heimann. 10. A Recent Case History of International Bank Fraud; B. Smouha. Part VI: Managing Market Risks: The Case of Israel. 11. Market Risks - The Amendment to the Basle Capital Accord and Internal Model Approach: The Israeli Case; Y. Landskroner, et al. 12. Risk Management with Derivatives Traded at the Tel Aviv Stock Exchange; Y. Orgler.