Plight of the Fortune Tellers : Why We Need to Manage Financial Risk Differently / Riccardo Rebonato.

Format:

Book

Author/Creator:

Rebonato, Riccardo, author.

Language:

English

Subjects (All):

Financial risk management--Data processing.

Financial risk management.

Physical Description:

1 online resource (325 p.)

Edition:

With a New preface by the author

Place of Publication:

Princeton, NJ : Princeton University Press, [2010]

Language Note:

English

Summary:

Today's top financial professionals have come to rely on ever-more sophisticated mathematics in their attempts to come to grips with financial risk. But this excessive reliance on quantitative precision is misleading--and puts everyone at risk. In Plight of the Fortune Tellers, Riccardo Rebonato forcefully argues that we must restore genuine decision making to our financial planning. Presenting a financial model that uses probability, experimental psychology, and decision theory, Rebonato challenges us to rethink the standard wisdom about risk management. He offers a radical yet surprisingly commonsense solution: managing risk comes down to real people making decisions under uncertainty. Plight of the Fortune Tellers is a must-read for anyone concerned about how today's financial markets are run. In a new preface, Rebonato explains how the ideas presented in this book fit into the context of the global financial crisis that followed its original publication. He argues that risk managers are still stuck in a probabilistic rut, and need to engage with the structural causes of real events.

Contents:

Frontmatter

CONTENTS

Preface to the Paperback Edition

Preface

Acknowledgments

1 Why This Book Matters

2 Thinking about Risk

3 Thinking about Probabilities

4 Making Choices

5. What Is Risk Management For?

6 VaR & Co: How It All Started

7 Looking Beneath the Surface: Hidden Problems

8 Which Type of Probability Matters in Risk Management?

9 The Promise of Economic Capital

10 What CanWe Do Instead?

Endnotes

INDEX

Notes:

Description based upon print version of record.

Description based on online resource; title from PDF title page (publisher's Web site, viewed 08. Jul 2019)

ISBN:

9786612936456

9781282936454

128293645X

9781400836390

1400836395

OCLC:

707067740