This book is a guide to asset and risk management from a practical point of view. It is centered around two questions … triggered by the global events on the stock markets since the middle of the last decade: - Why do crashes happen when in theory … they should not? - How do investors deal with such crises in terms of their risk measurement and management and, as a …

-- Uncertainty is the Enemy of Risk Management -- Modern Risk Management -- Evolution and Risk: The Bridge and the Missing Link … Deconstruction for Mathematical Prediction -- Singularity and Chaos Theory -- The Mathematical Solution -- Universal Risk Management …Framing the Risk Challenge -- Understanding the Hidden Risk of Dynamic Complexity -- Understanding the Nature of Risk …

This handbook examines the latest techniques and strategies that are used to unlock the risk transfer capacity of … contextualises non-traditional risk transfer tools created over the last 20 years. Featuring contributions from distinguished … academics and professionals from around the world, this book covers in detail issues in securitization, financial risk …

which financial markets were trying to allocate risk between heterogeneous agents when productive investment opportunities … are scarce. We begin by showing how heterogeneity in terms of risk tolerance can cause financial markets to propagate …

-V analysis; Sensitivity of optimal debt and risk to alternative stochastic processes, Early Warning Signals -- Application of …Stochastic Optimal Control (SOC)-a mathematical theory concerned with minimizing a cost (or maximizing a payout …) pertaining to a controlled dynamic process under uncertainty-has proven incredibly helpful to understanding and predicting debt …

expected exchange rate depreciations (appreciations) for high (low) interest rate currencies, suggesting that disaster risk is … priced in currency markets. To study the price of disaster risk, we propose a simple structural model that includes both … Gaussian and disaster risk and can be estimated even in samples that do not contain disasters. Estimating the model over the …

Introduction -- Liquidity Risk: Economic Issues -- Liquidity Risk: Regulatory Issues -- Economic Impacts of the New …The recent turmoil on financial markets has made evident the importance of efficient liquidity risk management for the … stability of banks. The measurement and management of liquidity risk must take into account economic factors such as the impact …

the guarantee-extending parties to "walk away". I derive the optimal risk management rule in such a framework and show … that it allows high volatility choices, while net worth is high. However, risk limits tighten abruptly when the firm's net … risk management rules, and can account for phenomena such as "flight to quality" …

monetary policy. The theory unifies an endogenous supply of illiquid local loans and risk-sharing among subsidiaries of bank …