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When Free Markets Fail: Saving the Market When It Can’t Save Itself

A Review by Scott McCleskey (2010)

In this timely and thought-provoking book, Scott McCleskey explores the concept of risk management in the context of free market economies. With the recent global financial crisis still fresh in our minds, McCleskey’s work serves as a valuable reminder of the importance of effective risk management practices.

The Book’s Approach

The author begins by defining risk and outlining the principles of sound governance, environmental, and social responsibility that underpin risk management. He then delves into the complexities of risk management in the banking industry, highlighting the need for a structured approach to identifying, measuring, managing, and monitoring risks.

Accessibility and Real-World Examples

One of the strengths of McCleskey’s book is its accessibility. Despite tackling complex topics such as regulatory requirements and financial instruments, he presents his ideas in a clear and concise manner, making it easy for readers from diverse backgrounds to understand.

Throughout the book, McCleskey draws on real-world examples to illustrate the importance of effective risk management. He highlights the consequences of violating regulatory requirements and the need for banks to adopt a proactive approach to managing risk.

Value for Readers

For those interested in learning more about risk management, McCleskey’s work is an excellent starting point. His insights are invaluable for anyone looking to gain a deeper understanding of the complex relationships between risk, governance, and compliance in the financial industry.

  • Fundamental Financial Accounting Concepts (9th ed.) by Thomas Edmonds, Christopher Edmonds, Frances McNair, and Philip Olds
  • Management Accounting: Information for Creating and Managing Value by Langfield-Smith, Thorne, & Hilton
  • HKIB E-learning Course No. 39 – Management Accounting

Assessment Method

  • Examination: 50 multiple-choice questions
  • Passing mark: 70%
  • Time allowed: 1.5 hours