Investment Risk Management [Hardcover]

Risk has two sides: underestimating it harms the investor, while overestimating it prevents the implementation of bold business projects. This book explains, from the point of view of the practitioner, the analysis of investment risk - a proper account of adequate risk management strategies - and offers an objective and readable account of the most common investment risk management procedures. It will not be highly mathematical, although mathematical formulae and technical graphs will be used where necessary, and will not rely on excessive technical jargon.

The author also covers guidelines of regulatory institutions that protect the market and the investor: Bank of International Settlements, US SEC and UK FSA.1 Introduction to Investment Risk.

Dream versus rude awakening.

Book structure.

2 The Beginning of Risk.

Risk and business.

Case study: The shark and its risk.

Case study: The ruin of Crédit Lyonnais (CL).

Case study: ABB engineering.

Investment scams.

Banking risk and sharks.

Risk management as a discipline.

Humans and risk.

Case study: High-street retail store losses.

Case study: Allied Irish Bank (AIB).

The state of the investment game.

Risk types.

Reputation risk.

Case study: Equitable Life.

Credit risk.

Market risk.

Operational risk.

Risk and damage.

Viable alternatives.

3 Investing under Risk.

Human behaviour and investment choice.

Portfolio management.

Value-at-Risk (VaR).

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