In Managing Risk in the New Economy, Dimitris Chorafas, an internationally recognized expert on risk management, predicts a dire end to the rampant uncertainty created by credit and market meltdowns that have rocked financial institutions and industrial organizations worldwide.  Choforas not only sounds the wake-up call, but also provides an authoritative blueprint for averting impending financial disasters. Delving into recent examples, such as the Long-Term Capital Management (LTCM) fiasco, Chorafas explains precisely how to avoid similar catastrophes. He examines various types of risk-credit, market, and operational-and in this comprehensive guide confronts such pressing issues as: *  The risks characterizing highly leveraged institutions *  How we develop an economy that creates value for companies and consumers *  The kinds of risks we assume in the process of wealth creation *  The dangerous consequences of hiding major losses through the use of derivatives *  The role of technology in the control of exposure Chorafas uncovers some common misconceptions surrounding the transfer of risk and, most important, shows us how to identify and control exposure in our portfolio.