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Financial risk

About: Financial risk is a research topic. Over the lifetime, 11899 publications have been published within this topic receiving 231404 citations. The topic is also known as: economic risk.


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Book
02 May 2003
TL;DR: The Financial Risk Manager Handbook, Second Edition as discussed by the authors provides a comprehensive reference and training guide for financial risk management, which can be used for the GARP's annual Financial Risk Management (FRM) exam.
Abstract: Handbook presents the various disciplines associated with financial risk management. Text was first created as a study support manual for the GARP's annual FRM exam, and as a general guide to assessing and controlling financial risk in today's rapidly changing environment. This edition is expanded to be suitable as a reference text for any risk professional. Back Cover Copy A comprehensive reference and training guide for financial risk management. Risk professionals looking to earn the Financial Risk Manager (FRM) certification, corporate training programs, professors, and graduate students all rely on one book for the most comprehensive and up-to-date information on financial risk management the Financial Risk Manager Handbook. Presented in a clear and consistent fashion, this completely updated Second Edition is the best way to prepare for the Financial Risk Manager (FRM) exam and has become the core text for risk management training programs worldwide. This definitive guide supports candidates studying for GARP?s annual FRM exam and prepares you to assess and control risk in today?s rapidly changing financial world. Financial Risk Manager Handbook, Second Edition summarizes the core body of knowledge for financial risk managers, covering such topics as quantitative methods, capital markets, as well as credit, operational, market, and integrated risk management. It also discusses relevant regulatory, legal, and accounting issues essential to risk professionals. The FRM is recognized as the world?s most prestigious global certification program created to measure a financial risk manager?s capabilities. With the FRM exam fast becoming an essential requirement for risk managers around the world, the Financial Risk Manager Handbook, Second Edition focuses on practical financial risk management techniques and solutions that are emphasized on the test and essential in the real world. Questions from previous exams are explained through tutorials so that you may prepare yourself or your employees for this comprehensive exam and for the risk management scenarios you will face at some point in your career. Table of Contents: Part I. Quantitative Analysis (Ch 1-4) Part II. Capital Markets (Ch 5-10) Part III. Market Risk Management (Ch 11-17) Part IV. Credit Risk Management (Ch 18-23) Part V. Operational and Integrated Risk Management (Ch 24-27) Part VI. Legal,Accounting and Tax Risk Management (Ch 28-29) Part VII. regulation and Compliance (Ch 30-32) About the Author PHILIPPE JORION is Professor of Finance at the Graduate School of Management at the University of California at Irvine. He holds an MBA and a PhD from the University of Chicago and a degree in engineering from the University of Brussels. Dr. Jorion has authored more than seventy publications directed towards academics and practitioners on the topic of risk management and international finance. He is Editor of the Journal of Risk and is on the editorial board of a number of other financial journals. He has won the Smith Breeden Prize for research and the William F. Sharpe Award for Scholarship in Financial Research. He has written the first edition of Financial Risk Manager Handbook as well as Financial Risk Management: Domestic and International Dimensions, Big Bets Gone Bad: Derivatives and Bankruptcy in Orange County, and Value at Risk: The New Benchmark for Managing Financial Risk.

311 citations

Journal ArticleDOI
TL;DR: In this article, the authors adopt a systemic risk indicator measured by the price of insurance against systemic financial distress and assess individual banks' marginal contributions to the systemic risk using publicly available data to the 19 bank holding companies covered by the U.S. Supervisory Capital Assessment Program (SCAP).
Abstract: We adopt a systemic risk indicator measured by the price of insurance against systemic financial distress and assess individual banks’ marginal contributions to the systemic risk. The methodology is applied using publicly available data to the 19 bank holding companies covered by the U.S. Supervisory Capital Assessment Program (SCAP), with the systemic risk indicator peaking around $1.1 trillion in March 2009. Our systemic risk contribution measure shows interesting similarity to and divergence from the SCAP loss estimates under stress test scenarios. In general, we find that a bank’s contribution to the systemic risk is roughly linear in its default probability but highly nonlinear with respect to institution size and asset correlation.

306 citations

Journal ArticleDOI
TL;DR: In this paper, the authors trace the development of the concept from the initial portfolio theory articles in 1952 to articles in the Journal of Investing in 1994, and provide an understanding of the issues facing the researchers.
Abstract: Downside risk measures in portfolio analysis purport to be a major improvement over traditional portfolio theory. This article traces the development of the concept from the initial portfolio theory articles in 1952 to articles in the Journal of Investing in 1994. An understanding of the issues facing the researchers provides better knowledge of the concept.

304 citations

Journal ArticleDOI
TL;DR: In this article, the authors argue that when increases in total risk are costly, firms optimally allocate risk by reducing (increasing) exposure to risks that provide zero (positive) economic rents.
Abstract: We provide an explanation for hedging as a means of allocating rather than reducing risk. We argue that when increases in total risk are costly, firms optimally allocate risk by reducing (increasing) exposure to risks that provide zero (positive) economic rents. Our evidence shows that mutual thrifts that convert to stock institutions increase total risk following conversion, consistent with their increased abilities and incentives for risk taking. They achieve this increase by hedging interest-rate risk and increasing credit risk. We provide some evidence that risk-management activities are related to growth capacity and management compensation structure attained at conversion.

303 citations

Journal ArticleDOI
TL;DR: The academic and policy debate regarding the role of central banks and financial regulators in addressing climate-related financial risks has rapidly expanded in recent years as mentioned in this paper, where the key controversies and potential research and policy avenues for the future are discussed.
Abstract: The academic and policy debate regarding the role of central banks and financial regulators in addressing climate-related financial risks has rapidly expanded in recent years. This Perspective presents the key controversies and discusses potential research and policy avenues for the future. Developing a comprehensive analytical framework to assess the potential impact of climate change and the low-carbon transition on financial stability seems to be the first crucial challenge. These enhanced risk measures could then be incorporated in setting financial regulations and implementing the policies of central banks.

297 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
2023122
2022250
2021643
2020658
2019673
2018541