Coleman's book does an excellent job of highlighting the importance of the qualitative aspects of risk management. This is in contrast to most other books that focus solely on quantitative issues. Here is my favorite quote from the book "The ultimate goal for risk management is to build a robust yet flexible organization and set of processes.
We need to recognize that quantitative risk measurement tools often fail to capture just those unanticipated events that pose the most risk to the organization. The art of risk management is in building a culture and organization that can respond to and withstand these unanticipated events. Although risk usually refers to the downside of random outcomes, as Coleman puts it, risk management is about taking advantage of opportunities controlling the downside and exploiting the upside.
There will also be web tools to calculate risk measures and such. Make sure you check it out If you're interested in financial risk management, you should read this ebook. Assuming you have some comfort with economics, finance and mathematics, "A Practical Guide to Risk Management" does a great job explaining both qualitative and quantitative facets of the field.
At times it's even entertaining, which is no small feat considering the often technical nature of the subject matter. What struck me most about the book is the sincerity of Coleman's text. Rather than adding mystique to what many already consider a fairly arcane part of finance, he strives to make the subject matter as accessible as possible. It's very clearly written with numerous examples.
Highly recommended. By the way, in case anyone's wondering, the sigma notation for equation 5. What this essentially means is that sigma and sigma are variances, not standard deviations. I was a bit rusty in terms of stats notation; however, fortunately, the author was kind enough to respond to my e-mail regarding what the different variables represented.
This book is focused on risk management for a financial firm, and is mainly devoted to the analysis of financial risk. Some interesting ideas arise i Risk management is too important a responsibility for managers to delegate it. Here I summarize some of the main ideas from each Chapter In Chapter 1 the author presents some concepts about risk measurement and management.
Newer Post Older Post Home. Subscribe to: Post Comments Atom. There are some great examples given which clarify some of the psychology of how risk can be misinterpreted.
This book will point the reader in the direction of other relevant texts to further their study. Coleman's book does an excellent job of highlighting the importance of the qualitative aspects of risk management. This is in contrast to most other books that focus solely on quantitative issues. Here is my favorite quote from the book "The ultimate goal for risk management is to build a robust yet flexible organization and set of processes.
We need to recognize that quantitative risk measurement tools often fail to capture just those unanticipated events that pose the most risk to the organization. The art of risk management is in building a culture and organization that can respond to and withstand these unanticipated events.
Although risk usually refers to the downside of random outcomes, as Coleman puts it, risk management is about taking advantage of opportunities controlling the downside and exploiting the upside. There will also be web tools to calculate risk measures and such.
Make sure you check it out If you're interested in financial risk management, you should read this ebook. Assuming you have some comfort with economics, finance and mathematics, "A Practical Guide to Risk Management" does a great job explaining both qualitative and quantitative facets of the field.
At times it's even entertaining, which is no small feat considering the often technical nature of the subject matter. What struck me most about the book is the sincerity of Coleman's text. Rather than adding mystique to what many already consider a fairly arcane part of finance, he strives to make the subject matter as accessible as possible. It's very clearly written with numerous examples. Highly recommended. By the way, in case anyone's wondering, the sigma notation for equation 5.
What this essentially means is that sigma and sigma are variances, not standard deviations. I was a bit rusty in terms of stats notation; however, fortunately, the author was kind enough to respond to my e-mail regarding what the different variables represented. This book is focused on risk management for a financial firm, and is mainly devoted to the analysis of financial risk.
Some interesting ideas arise i Risk management is too important a responsibility for managers to delegate it. Here I summarize some of the main ideas from each Chapter In Chapter 1 the author presents some concepts about risk measurement and management.
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