Includes index. Corelli, A. (2015). Understanding financial risk management. London : Routledge.

Risk: an overview -- Introduction -- The process of risk management -- Theory of markets -- Financial markets and volatility -- Modern portfolio theory -- The capital asset pricing model -- Volatility and correlation -- Statistical analysis -- Relevant distributions -- Probabilistic approaches -- Time series analysis -- Financial derivatives -- Options and futures -- Pricing of derivatives -- Interest rate derivatives -- Market risk -- Market risk metrics -- VaR calculation methods -- Inside VaR -- Interest rate risk -- The dynamics of interest rates -- Short-rate models -- IRR management -- Credit risk -- Basic concepts -- Structural models -- Reduced-form methods -- Liquidity risk -- Market pices -- Models of liquidity -- Liquidity risk and regulation -- Other risks -- Operational risk -- Currency risk -- Volatility risk -- Financial crisis and securitization -- Crisis and regulation -- Credit derivatives -- Securitization -- Hedging techniques -- Market risk hedging -- Credit risk hedging -- Advanced IRR hedging -- Beyond normality and correlation -- Copula functions -- Extreme value theory -- Beyond VaR -- Advanced topics -- VaR advances -- Alternative risk transfer -- High-frequency trading -- The future of financial risk management -- The role of corporate governance -- The banking sector -- Challenges for research

Financial Risk Management is a topic of primary importance in financial markets and, more generally, in life. Risk can be seen as an opportunity if related to the concept of compensative return. It is therefore important to learn how to measure and control risk, in order to get exposure to as much risk as is necessary to achieve some level of compensation, without further useless exposure.This book analyses the various types of financial risk a financial institution faces in everyday operations. Each type of risk is dealt with using a rigorous mix of analytical and theoretical approach, describing all the major models available in the literature, with an innovative look at the topic. This book covers the following aspects of risks and provides introductory overviews the most relevant statistical and mathematical tools:Market RiskInterest Rate RiskCredit RiskLiquidity RiskOperational RiskCurrency Risk Volatility RiskUnderstanding Financial Risk Management offers an innovative approach to financial risk management. With a broad view of theory and the industry, it aims at being a friendly, but serious, starting point for those who encounter risk management for the first time, as well as for more advanced users.