This book provides a comprehensive treatment of the theoretical concepts and modelling techniques of quantitative risk management and equips readers - whether financial risk analysts, actuaries, regulators, or students of quantitative finance - with practical tools to solve real-world problems

By providing a solid theoretical basis, this textbook introduces modern finance to readers, including students in science and technology, who already have a good foundation in quantitative skills. It combines the classical, decision oriented approach and the traditional organization of corporate...

Preface Introduction The credit crisis and the ongoing European sovereign debt crisis have highlighted the native form of credit risk, namely counterparty risk. This is the risk of non-payment of promised cash flows due to the default of a party in an over the counter (OTC) derivative...