Donald H. Chew is the founding editor of the Journal of Applied Corporate Finance, which was acquired by Morgan Stanley in August of 2004. Before joining Morgan Stanley three years ago, Chew was one of the founding partners of Stern, Stewart, and Co., a New York-based corporate finance advisory firm started in 1982. He has spent the past 25 years editing this journal and its predecessors, the Midland Corporate Finance Journal and the Chase Financial Quarterly. He has published over ten books on corporate finance, including The New Corporate Finance--Where Theory Meets Practice and (with Joel Stern) The Revolution in Corporate Finance, which are widely used in business schools throughout the United States and Europe. Chew has a Ph.D. in English as well as an MBA from the University of Rochester.

Just plain terrific. The selection of contributors is outstanding, the presentations extraordinarily lucid and stimulating, and the story told a mighty impressive one. -- Peter Bernstein, editor of the Journal of Portfolio Management and author of Against the Gods: The Remarkable Story of Risk The Journal of Applied Corporate Finance truly bridges the gap between leading thinking and practical solutions. The articles are uniformly well written, with a clear eye to showing practitioners how financial management can be used to increase shareholder value. -- Tom King, Vice President-Finance, Progressive Insurance Co.

• Introduction Part I: The Products 1. Financial Innovation: Achievements and Prospects, by Merton H. Miller 2. The Evolution of Risk Management Products, by S. Waite Rawls III and Charles W. Smithson 3. The Revolution in Corporate Risk Management: A Decade of Innovations in Pro cess and Products, by Christopher L. Culp 4. A Senior Manager's Guide to Integrated Risk Management, by Lisa K. Meulbroek Part II: Corporate Uses of the Products 5. Rethinking Risk Management, by Rene M. Stulz 6. An Analysis of Trading Profi ts: How Most Trading Rooms Really Make Money, by Alberic Braas and Charles N. Bralver 7. Theory of Risk Capital in Financial Firms, by Robert C. Merton and Andre F. Perold 8. Value At Risk: Uses and Abuses, by Christopher L. Culp, Merton H. Miller, and Andrea M. P. Neves 9. Allocating Shareholder Capital to Pension Plans, by Robert C. Merton 10. The Uses and Abuses of Finite Risk Reinsurance, by Christopher L. Culp and J. B. Heaton 11. Does Risk Management Add Value? A Survey of the Evidence, by Charles W. Smithson and Betty J. Simkins Part III: Practitioner Perspectives: Case Studies and Roundtables 12. Identifying, Measuring, and Hedging Currency Risk at Merck, by Judy C. Lewent and A. John Kearney 13. Corporate Insurance Strategy: The Case of British Petroleum, by Neil A. Doherty and Clifford W. Smith, Jr. 14. Hedging and Value in the U.S. Airline Industry, by David A. Carter, Daniel A. Rogers, and Betty J. Simkins 15. Enterprise Risk Management: Theory and Practice, by Brian W. Nocco and Rene M. Stulz 16. The Rise and Evolution of the Chief Risk Officer: Enterprise Risk Management at Hydro One, by Tom Aabo, John R. S. Fraser, and Betty J. Simkins 17. University of Georgia Roundtable on Enterprise-Wide Risk Management, Atlanta, Georgia, November 18, 2002 18. Morgan Stanley Roundtable on Enterprise Risk Management and Corporate Strategy, New York City, June 21, 2005 Index

Donald H. Chew is the founding editor of the Journal of Applied Corporate Finance, which was acquired by Morgan Stanley in August of 2004. Before joining Morgan Stanley three years ago, Chew was one of the founding partners of Stern, Stewart, and Co., a New York-based corporate finance advisory firm started in 1982. He has spent the past 25 years editing this journal and its predecessors, the Midland Corporate Finance Journal and the Chase Financial Quarterly. He has published over ten books on corporate finance, including The New Corporate Finance--Where Theory Meets Practice and (with Joel Stern) The Revolution in Corporate Finance, which are widely used in business schools throughout the United States and Europe. Chew has a Ph.D. in English as well as an MBA from the University of Rochester.

Just plain terrific. The selection of contributors is outstanding, the presentations extraordinarily lucid and stimulating, and the story told a mighty impressive one. -- Peter Bernstein, editor of the Journal of Portfolio Management and author of Against the Gods: The Remarkable Story of Risk The Journal of Applied Corporate Finance truly bridges the gap between leading thinking and practical solutions. The articles are uniformly well written, with a clear eye to showing practitioners how financial management can be used to increase shareholder value. -- Tom King, Vice President-Finance, Progressive Insurance Co.

• Introduction Part I: The Products 1. Financial Innovation: Achievements and Prospects, by Merton H. Miller 2. The Evolution of Risk Management Products, by S. Waite Rawls III and Charles W. Smithson 3. The Revolution in Corporate Risk Management: A Decade of Innovations in Pro cess and Products, by Christopher L. Culp 4. A Senior Manager's Guide to Integrated Risk Management, by Lisa K. Meulbroek Part II: Corporate Uses of the Products 5. Rethinking Risk Management, by Rene M. Stulz 6. An Analysis of Trading Profi ts: How Most Trading Rooms Really Make Money, by Alberic Braas and Charles N. Bralver 7. Theory of Risk Capital in Financial Firms, by Robert C. Merton and Andre F. Perold 8. Value At Risk: Uses and Abuses, by Christopher L. Culp, Merton H. Miller, and Andrea M. P. Neves 9. Allocating Shareholder Capital to Pension Plans, by Robert C. Merton 10. The Uses and Abuses of Finite Risk Reinsurance, by Christopher L. Culp and J. B. Heaton 11. Does Risk Management Add Value? A Survey of the Evidence, by Charles W. Smithson and Betty J. Simkins Part III: Practitioner Perspectives: Case Studies and Roundtables 12. Identifying, Measuring, and Hedging Currency Risk at Merck, by Judy C. Lewent and A. John Kearney 13. Corporate Insurance Strategy: The Case of British Petroleum, by Neil A. Doherty and Clifford W. Smith, Jr. 14. Hedging and Value in the U.S. Airline Industry, by David A. Carter, Daniel A. Rogers, and Betty J. Simkins 15. Enterprise Risk Management: Theory and Practice, by Brian W. Nocco and Rene M. Stulz 16. The Rise and Evolution of the Chief Risk Officer: Enterprise Risk Management at Hydro One, by Tom Aabo, John R. S. Fraser, and Betty J. Simkins 17. University of Georgia Roundtable on Enterprise-Wide Risk Management, Atlanta, Georgia, November 18, 2002 18. Morgan Stanley Roundtable on Enterprise Risk Management and Corporate Strategy, New York City, June 21, 2005 Index

Donald H. Chew is the founding editor of the Journal of Applied Corporate Finance, which was acquired by Morgan Stanley in August of 2004. Before joining Morgan Stanley three years ago, Chew was one of the founding partners of Stern, Stewart, and Co., a New York-based corporate finance advisory firm started in 1982. He has spent the past 25 years editing this journal and its predecessors, the Midland Corporate Finance Journal and the Chase Financial Quarterly. He has published over ten books on corporate finance, including The New Corporate Finance--Where Theory Meets Practice and (with Joel Stern) The Revolution in Corporate Finance, which are widely used in business schools throughout the United States and Europe. Chew has a Ph.D. in English as well as an MBA from the University of Rochester.

Just plain terrific. The selection of contributors is outstanding, the presentations extraordinarily lucid and stimulating, and the story told a mighty impressive one. -- Peter Bernstein, editor of the Journal of Portfolio Management and author of Against the Gods: The Remarkable Story of Risk The Journal of Applied Corporate Finance truly bridges the gap between leading thinking and practical solutions. The articles are uniformly well written, with a clear eye to showing practitioners how financial management can be used to increase shareholder value. -- Tom King, Vice President-Finance, Progressive Insurance Co.

• Introduction Part I: The Products 1. Financial Innovation: Achievements and Prospects, by Merton H. Miller 2. The Evolution of Risk Management Products, by S. Waite Rawls III and Charles W. Smithson 3. The Revolution in Corporate Risk Management: A Decade of Innovations in Pro cess and Products, by Christopher L. Culp 4. A Senior Manager's Guide to Integrated Risk Management, by Lisa K. Meulbroek Part II: Corporate Uses of the Products 5. Rethinking Risk Management, by Rene M. Stulz 6. An Analysis of Trading Profi ts: How Most Trading Rooms Really Make Money, by Alberic Braas and Charles N. Bralver 7. Theory of Risk Capital in Financial Firms, by Robert C. Merton and Andre F. Perold 8. Value At Risk: Uses and Abuses, by Christopher L. Culp, Merton H. Miller, and Andrea M. P. Neves 9. Allocating Shareholder Capital to Pension Plans, by Robert C. Merton 10. The Uses and Abuses of Finite Risk Reinsurance, by Christopher L. Culp and J. B. Heaton 11. Does Risk Management Add Value? A Survey of the Evidence, by Charles W. Smithson and Betty J. Simkins Part III: Practitioner Perspectives: Case Studies and Roundtables 12. Identifying, Measuring, and Hedging Currency Risk at Merck, by Judy C. Lewent and A. John Kearney 13. Corporate Insurance Strategy: The Case of British Petroleum, by Neil A. Doherty and Clifford W. Smith, Jr. 14. Hedging and Value in the U.S. Airline Industry, by David A. Carter, Daniel A. Rogers, and Betty J. Simkins 15. Enterprise Risk Management: Theory and Practice, by Brian W. Nocco and Rene M. Stulz 16. The Rise and Evolution of the Chief Risk Officer: Enterprise Risk Management at Hydro One, by Tom Aabo, John R. S. Fraser, and Betty J. Simkins 17. University of Georgia Roundtable on Enterprise-Wide Risk Management, Atlanta, Georgia, November 18, 2002 18. Morgan Stanley Roundtable on Enterprise Risk Management and Corporate Strategy, New York City, June 21, 2005 Index