Upside, Downside: Simple Rules of Risk Management for the Smart Investor

From Ron Dembo, advisor to leading banks and hedge funds, and Daniel Stoffman, co-author of the revolutionary bestseller Boom, Bust and Echo, Upside, Downside is an accessible guide to the biggest danger facing investors in an increasingly uncertain world: financial risk.

As a generation of investors knows, financial markets are vulnerable to events – from terrorist attacks to epidemics – that are guaranteed to occur, yet impossible to predict. As markets become more complex and intertwined, investors feel increasingly unsure: how can you safeguard your financial prospects when you can’t know what the future will look like?

Upside, Downside is a toolbox to protect yourself from financial risk. Co-authored by a leading financial journalist and a pioneer in the field of risk management who advises the world’s major banks, it gives investors access for the first time to the most advanced risk management strategies available, distilled into three simple rules for managing risk. These rules – Knowing What You Own, Using Multiple Scenarios, and Anticipating Regret – will allow you to take control of your financial future. You can’t banish all the dangers of the world, but Upside, Downside will give you the skills to manage them.

Dr. Ron S. Dembo is the founder and former president of Algorithmics Incorporated, and grew it from a startup to the largest enterprise risk management software company in the world, with offices in fifteen countries and over half of the world’s top banks as clients. He is founder and CEO of 0footprint. He has taught at Yale and MIT, and has published over sixty technical papers on Finance and Mathematical Optimization, and holds a number of patents in computational finance. In 2003 he was among the first fifty people inducted into the Risk Hall of Fame.