The Known, the Unknown, and the Unknowable in Financial Risk Management: Measurement and Theory Advancing Practice.

DIEBOLD, Francis X.; DOHERTY, Neil A. & Richard J. HERRING (eds.):

ISBN 10: 0691128839 / ISBN 13: 9780691128832

Published by Princeton & Oxford: Princeton University Press, 2010., 2010

About this Item

viii, 1 leaf, 380 pp; figs. Original cloth. Near Fine, in near fine dust jacket. Contributors include Granger, B. Mandelbrot, Taleb, Engle, Zeckhauser, et al.

Seller Inventory # 20809

Bibliographic Details

• Title: The Known, the Unknown, and the Unknowable in Financial Risk Management: Measurement and Theory Advancing Practice.
• Publisher: Princeton & Oxford: Princeton University Press, 2010.
• Publication Date: 2010
• Language: English
• ISBN 10: 0691128839
• ISBN 13: 9780691128832
• Binding: Hardcover
• Edition: 1st Edition
• Condition: Near Fine
• Dust Jacket Condition: Near Fine

About this title

Synopsis

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

About the Author

Francis X. Diebold is the Paul F. and E. Warren Shafer Miller Professor of Economics at the University of Pennsylvania and professor of finance and statistics at the university's Wharton School. Neil A. Doherty is the Frederick H. Ecker Professor of Insurance and Risk Management at the Wharton School. Richard J. Herring is the Jacob Safra Professor of International Banking and professor of finance at the Wharton School.