Risk Management in Turbulent Times

Business & Finance, Finance & Investing, Corporate Finance, Investments & Securities
Cover of the book Risk Management in Turbulent Times by Gilles Beneplanc, Jean-Charles Rochet, Oxford University Press
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Gilles Beneplanc, Jean-Charles Rochet ISBN: 9780199339921
Publisher: Oxford University Press Publication: August 5, 2011
Imprint: Oxford University Press Language: English
Author: Gilles Beneplanc, Jean-Charles Rochet
ISBN: 9780199339921
Publisher: Oxford University Press
Publication: August 5, 2011
Imprint: Oxford University Press
Language: English

The subprime crisis has shown that the sophisticated risk management models used by banks and insurance companies had serious flaws. Some people even suggest that these models are completely useless. Others claim that the crisis was just an unpredictable accident that was largely amplified by the lack of expertise and even naivety of many investors. This book takes the middle view. It shows that these models have been designed for "tranquil times", when financial markets behave smoothly and efficiently. However, we are living in more and more "turbulent times": large risks materialize much more often than predicted by "normal" models, financial models periodically go through bubbles and crashes. Moreover, financial risks result from the decisions of economic actors who can have incentives to take excessive risks, especially when their remunerations are ill designed. The book provides a clear account of the fundamental hypotheses underlying the most popular models of risk management and show that these hypotheses are flawed. However it shows that simple models can still be useful, provided they are well understood and used with caution.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

The subprime crisis has shown that the sophisticated risk management models used by banks and insurance companies had serious flaws. Some people even suggest that these models are completely useless. Others claim that the crisis was just an unpredictable accident that was largely amplified by the lack of expertise and even naivety of many investors. This book takes the middle view. It shows that these models have been designed for "tranquil times", when financial markets behave smoothly and efficiently. However, we are living in more and more "turbulent times": large risks materialize much more often than predicted by "normal" models, financial models periodically go through bubbles and crashes. Moreover, financial risks result from the decisions of economic actors who can have incentives to take excessive risks, especially when their remunerations are ill designed. The book provides a clear account of the fundamental hypotheses underlying the most popular models of risk management and show that these hypotheses are flawed. However it shows that simple models can still be useful, provided they are well understood and used with caution.

More books from Oxford University Press

Cover of the book Choosing Our Religion by Gilles Beneplanc, Jean-Charles Rochet
Cover of the book Moonpaths by Gilles Beneplanc, Jean-Charles Rochet
Cover of the book Empire of Extinction by Gilles Beneplanc, Jean-Charles Rochet
Cover of the book The Economics of American Art by Gilles Beneplanc, Jean-Charles Rochet
Cover of the book Beginners - Resource Books for Teachers by Gilles Beneplanc, Jean-Charles Rochet
Cover of the book Understanding Somatization in the Practice of Clinical Neuropsychology by Gilles Beneplanc, Jean-Charles Rochet
Cover of the book The Aztecs: A Very Short Introduction by Gilles Beneplanc, Jean-Charles Rochet
Cover of the book Sentencing Policy: Oxford Bibliographies Online Research Guide by Gilles Beneplanc, Jean-Charles Rochet
Cover of the book In Search of the Black Fantastic by Gilles Beneplanc, Jean-Charles Rochet
Cover of the book Grand Theories and Everyday Beliefs by Gilles Beneplanc, Jean-Charles Rochet
Cover of the book Guests of God by Gilles Beneplanc, Jean-Charles Rochet
Cover of the book Physiology by Gilles Beneplanc, Jean-Charles Rochet
Cover of the book Integrative Rheumatology by Gilles Beneplanc, Jean-Charles Rochet
Cover of the book Freedom Riders by Gilles Beneplanc, Jean-Charles Rochet
Cover of the book Thomas Aquinas's Summa Contra Gentiles by Gilles Beneplanc, Jean-Charles Rochet
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy