The Known, the Unknown, and the Unknowable in Financial Risk Management

Measurement and Theory Advancing Practice

Business & Finance, Industries & Professions, Insurance, Finance & Investing, Finance, Nonfiction, Reference & Language, Reference
Cover of the book The Known, the Unknown, and the Unknowable in Financial Risk Management by , Princeton University Press
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: ISBN: 9781400835287
Publisher: Princeton University Press Publication: April 19, 2010
Imprint: Princeton University Press Language: English
Author:
ISBN: 9781400835287
Publisher: Princeton University Press
Publication: April 19, 2010
Imprint: Princeton University Press
Language: English

A clear understanding of what we know, don't know, and can't know should guide any reasonable approach to managing financial risk, yet the most widely used measure in finance today--Value at Risk, or VaR--reduces these risks to a single number, creating a false sense of security among risk managers, executives, and regulators. This book introduces a more realistic and holistic framework called
KuU
--the
K
nown, the
u
nknown, and the
U
nknowable--that enables one to conceptualize the different kinds of financial risks and design effective strategies for managing them. Bringing together contributions by leaders in finance and economics, this book pushes toward robustifying policies, portfolios, contracts, and organizations to a wide variety of
KuU
risks. Along the way, the strengths and limitations of "quantitative" risk management are revealed.

In addition to the editors, the contributors are Ashok Bardhan, Dan Borge, Charles N. Bralver, Riccardo Colacito, Robert H. Edelstein, Robert F. Engle, Charles A. E. Goodhart, Clive W. J. Granger, Paul R. Kleindorfer, Donald L. Kohn, Howard Kunreuther, Andrew Kuritzkes, Robert H. Litzenberger, Benoit B. Mandelbrot, David M. Modest, Alex Muermann, Mark V. Pauly, Til Schuermann, Kenneth E. Scott, Nassim Nicholas Taleb, and Richard J. Zeckhauser.

  • Introduces a new risk-management paradigm
  • Features contributions by leaders in finance and economics
  • Demonstrates how "killer risks" are often more economic than statistical, and crucially linked to incentives
  • Shows how to invest and design policies amid financial uncertainty
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

A clear understanding of what we know, don't know, and can't know should guide any reasonable approach to managing financial risk, yet the most widely used measure in finance today--Value at Risk, or VaR--reduces these risks to a single number, creating a false sense of security among risk managers, executives, and regulators. This book introduces a more realistic and holistic framework called
KuU
--the
K
nown, the
u
nknown, and the
U
nknowable--that enables one to conceptualize the different kinds of financial risks and design effective strategies for managing them. Bringing together contributions by leaders in finance and economics, this book pushes toward robustifying policies, portfolios, contracts, and organizations to a wide variety of
KuU
risks. Along the way, the strengths and limitations of "quantitative" risk management are revealed.

In addition to the editors, the contributors are Ashok Bardhan, Dan Borge, Charles N. Bralver, Riccardo Colacito, Robert H. Edelstein, Robert F. Engle, Charles A. E. Goodhart, Clive W. J. Granger, Paul R. Kleindorfer, Donald L. Kohn, Howard Kunreuther, Andrew Kuritzkes, Robert H. Litzenberger, Benoit B. Mandelbrot, David M. Modest, Alex Muermann, Mark V. Pauly, Til Schuermann, Kenneth E. Scott, Nassim Nicholas Taleb, and Richard J. Zeckhauser.

More books from Princeton University Press

Cover of the book Global Environment by
Cover of the book Facing the Challenge of Democracy by
Cover of the book The Edge of Objectivity by
Cover of the book The Power and Independence of the Federal Reserve by
Cover of the book Princeton Readings in Political Thought by
Cover of the book Structural Macroeconometrics by
Cover of the book Timefulness by
Cover of the book Alice's Adventures in Wonderland by
Cover of the book Homology, Genes, and Evolutionary Innovation by
Cover of the book Military Power by
Cover of the book Kierkegaard's Writings, XXII, Volume 22 by
Cover of the book The Failed Welfare Revolution by
Cover of the book A King Travels by
Cover of the book When Is True Belief Knowledge? by
Cover of the book Borrowing Constitutional Designs by
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