Feel Free Read Introduction to Risk Management for Finance and Corporate Professionals: Lessons and observations from real life situations MOBI
How did the Titanic end up hitting the iceberg ?Why did the first Boeing B17 bomber crash during its first demo flight in front the the US Army ?What's the secret of the oldest companies in the world ?Are government bonds really risk free assets ?Are there alternatives to the CAPM to price and remunerate risk ?This book answers these questions and provides an introduction to risk management for finance and corporate professionals.Risk is a pervasive part of our world: every endeavor, every aspect of life comes with a certain amount of risk.Although we all know that unpredicted events can happen any time, setbacks, and sometimes disasters catch us unprepared regularly.Every business endeavor is based on an implicit or explicit assumption of risk/reward ratio. In this sense, risk management is a part of every business decision that we make, consciously or not. It is, or should be, one of the core aspects on which a corporate strategy is defined.Risk management helps professionals to deal with uncertainty and the potentially negative outcomes of unforeseen events.The discipline calls upon concepts from mathematics, philosophy, anthropology, organizational behavior, engineering or biology to name a few.The book consists of several chapters: Understanding the very concepts of frequentist and bayesian probabilities Understanding the real nature of risk, and the differences between risk and volatility The standard Capital Asset Pricing Model for risk remuneration and the Value at Risk (VaR) Beyond the CAPM: how to find an alternative to the CAPM to price risk How to identify and quantify risk factors, and build a risk matrix (risk mapping) How to choose which risk factors to address first How to alleviate the impacts of risk factors: resilience, antifragility, redundancy, circuit breakers, system stability How Artificial Intelligence can help in risk management...or be a risk factor itselfThe book is the backbone of a risk management class that the author is giving at Skema Business School in Paris.
