Jubel: Risk Management

Risk Management MC Graw, 745 pages, PDF
Risk is the fundamental element that influences financial behavior. In its absence, the financial
system necessary for efficient allocations of resources would be vastly simplified. In that world, only
a few institutions and financial instruments would be needed, and the practice of finance would
require relatively elementary analytical tools. But, of course, in the real world, risk is ubiquitous.
Much of the structure of the financial system we see serves the function of the efficient distribution
of risk. Much of the financial decision making by households, business firms, governments, and
especially financial institutions is focused on the management of risk. Measuring the influence of
risk, and analyzing ways of controlling and allocating it, require a wide range of sophisticated
mathematical and computational tools. Indeed, mathematical models of modern finance practice
contain some of the most complex applications of probability, optimization, and estimation theories.
Those applications challenge the most powerful of computational technologies.
Risk Management provides a comprehensive introduction to the subject. Presented within the
framework of a financial institution, it covers the design and operation of a risk-management system,
the technical modeling within that system, and the interplay between the internal oversight and the
external regulatory components of the system.