Financial Risk Management is equally suitable for firm risk managers, economists, and policy makers seeking grounding in the subject. This timely guide skillfully surveys the landscape of financial risk and the financial developments of recent decades that culminated in the crisis. The book provides a comprehensive overview of the different types of financial risk we face, as well as the techniques used to measure and manage them. Topics covered include:
- Market risk, from Value-at-Risk (VaR) to risk models for options
- Credit risk, from portfolio credit risk to structured credit products
- Model risk and validation
- Risk capital and stress testing
- Liquidity risk, leverage, systemic risk, and the forms they take
- Financial crises, historical and current, their causes and characteristics
- Financial regulation and its evolution in the wake of the global crisis
- And much more
Combining the more model-oriented approach of risk management-as it has evolved over the past two decades-with an economist's approach to the same issues, Financial Risk Management is the essential guide to the subject for today's complex world.