Financial Risk Manager Handbook + Test Bank - FRM Part I / Part II

The dangers inherent in the financial system make understanding risk management essential for anyone working in, or planning to work in, the financial sector. A practical resource for financial professionals and students alike, Risk Management and Financial Institutions, Third Edition explains all aspects of financial risk as well as the way financial institutions are regulated, to help readers better understand financial markets and potential dangers.

Fully revised and updated, this new edition features coverage of Basel 2.5, Basel III and Dodd-Frank as well as expanded sections on counterparty credit risk, central clearing, and collateralization. In addition, end-of-chapter practice problems and a website featuring supplemental materials designed to provide a more comprehensive learning experience make this the ultimate learning resource. Written by acclaimed risk management expert, John Hull, Risk Management and Financial Institutions is the only book you need to understand—and respond to—financial risk.

• The new edition of the financial risk management bestseller
• Describes the activities of different types of financial institutions, explains how they are regulated, and covers market risk, credit risk, operational risk, liquidity risk, and model risk
• Features new coverage of Basel III, Dodd-Frank, counterparty credit risk, central clearing, collateralization, and much more
• Provides readers with access to a supplementary website offering software and unique learning aids
• Author John Hull is one of the most respected authorities on financial risk management

A timely update to the definitive resource on risk in the financial system, Risk Management and Financial Institutions + Web Site, Third Edition is an indispensable resource from internationally renowned expert John Hull.

Written by renowned risk expert Jon Danielsson, the book begins with an introduction to financial markets and market prices, volatility clusters, fat tails and nonlinear dependence. It then goes on to present volatility forecasting with both univatiate and multivatiate methods, discussing the various methods used by industry, with a special focus on the GARCH family of models. The evaluation of the quality of forecasts is discussed in detail. Next, the main concepts in risk and models to forecast risk are discussed, especially volatility, value-at-risk and expected shortfall. The focus is both on risk in basic assets such as stocks and foreign exchange, but also calculations of risk in bonds and options, with analytical methods such as delta-normal VaR and duration-normal VaR and Monte Carlo simulation. The book then moves on to the evaluation of risk models with methods like backtesting, followed by a discussion on stress testing. The book concludes by focussing on the forecasting of risk in very large and uncommon events with extreme value theory and considering the underlying assumptions behind almost every risk model in practical use – that risk is exogenous – and what happens when those assumptions are violated.

Every method presented brings together theoretical discussion and derivation of key equations and a discussion of issues in practical implementation. Each method is implemented in both MATLAB and R, two of the most commonly used mathematical programming languages for risk forecasting with which the reader can implement the models illustrated in the book.

The book includes four appendices. The first introduces basic concepts in statistics and financial time series referred to throughout the book. The second and third introduce R and MATLAB, providing a discussion of the basic implementation of the software packages. And the final looks at the concept of maximum likelihood, especially issues in implementation and testing.

"Enterprise Risk Management and COSO is a comprehensive reference book that presents core management of risk tools in a helpful and organized
way. If you are an internal auditor who is interested in risk management, exploring this book is one of the best ways to gain an understanding of enterprise risk management issues."
—Naly de Carvalho, FSA Times

"This book represents a unique guide on how to manage many of the critical components that constitute an organization's corporate defense program."
—Sean Lyons, Corporate Defense Management (CDM) professional

"This book provides a comprehensive analysis of enterprise risk management and is invaluable to anyone working in the risk management arena. It provides excellent information regarding the COSO framework, control components, control environment, and quantitative risk assessment methodologies. It is a great piece of work."
—J. Richard Claywell, CPA, ABV, CVA, CM&AA, CFFA, CFD

"As digital information continues its exponential growth and more systems become interconnected, the demand and need for proper risk management will continue to increase. I found the book to be very informative, eye-opening, and very pragmatic with an approach to risk management that will not only add value to all boards who are maturing and growing this capability, but also will provide them with competitive advantage in this important area of focus."
—David Olivencia, President, Hispanic IT Executive Council

Optimally manage your company's risks, even in the worst of economic conditions.

There has never been a stronger need for sound risk management than now. Today's organizations are expected to manage a variety of risks that were unthinkable a decade ago. Insightful and compelling, Enterprise Risk Management and COSO reveals how to:

• Successfully incorporate enterprise risk management into your organization's culture

• Foster an environment that rewards open discussion of risks rather than concealment of them

• Quantitatively model risks and effectiveness of internal controls

• Best discern where risk management resources should be dedicated to minimize occurrence of risk-based events

• Test predictive models through empirical data

As a manager and leader are you faced each day with an avalanche of new and bewildering demands? Do the days seem to get shorter as you try to juggle a demanding career with developing new skills and maintaining a balanced life?

Relax! Instant Manager is a new way of winning back time and growing your confidence and professionalism with the support and guidance of THE experts in management. Based on the 10 questions most frequently asked by managers JUST LIKE YOU, Instant Manager gives you easy access to the knowledge and guidance you need and even includes a handy tear out card of ten top tips to carry that knowledge with you wherever you go. Written in a concise, accessible style, this is the best support any manager can have.

Take the next step in Overcoming Information Overload, including the following: what information overload is and how to recognise it, how to speed read effectively, how to avoid overloading others.

Financial Modelling - Theory, Implementation and Practice is a unique combination of quantitative techniques, the application to financial problems and programming using Matlab. The book enables the reader to model, design and implement a wide range of financial models for derivatives pricing and asset allocation, providing practitioners with complete financial modelling workflow, from model choice, deriving  prices and Greeks using (semi-) analytic and simulation techniques, and calibration even for exotic options.

The book is split into three parts. The first part considers financial markets in general and looks at the complex models needed to handle observed structures, reviewing models based on diffusions including stochastic-local volatility models and (pure) jump processes. It shows the possible risk neutral densities, implied volatility surfaces, option pricing and typical paths for a variety of models including SABR, Heston, Bates, Bates-Hull-White, Displaced-Heston, or stochastic volatility versions of Variance Gamma, respectively Normal Inverse Gaussian models and finally, multi-dimensional models. The stochastic-local-volatility Libor market model with time-dependent parameters is considered and as an application how to price and risk-manage CMS spread products is demonstrated.

The second part of the book deals with numerical methods which enables the reader to use the models of the first part for pricing and risk management, covering methods based on direct integration and Fourier transforms, and detailing the implementation of the COS, CONV, Carr-Madan method or Fourier-Space-Time Stepping. This is applied to pricing of European, Bermudan and exotic options as well as the calculation of the Greeks. The Monte Carlo simulation technique is outlined and bridge sampling is discussed in a Gaussian setting and for Lévy processes. Computation of Greeks is covered using likelihood ratio methods and adjoint techniques. A chapter on state-of-the-art optimization algorithms rounds up the toolkit for applying advanced mathematical models to financial problems and the last chapter in this section of the book also serves as an introduction to model risk. 

The third part is devoted to the usage of Matlab, introducing the software package by describing the basic functions applied for financial engineering. The programming is approached from an object-oriented perspective with examples to propose a framework for calibration, hedging and the adjoint method for calculating Greeks in a Libor Market model.

Source code used for producing the results and analysing the models is provided on the author’s dedicated website, http://www.mathworks.de/matlabcentral/fileexchange/authors/246981

As an open source content management system, WordPress allows users to easily build feature-rich web sites with no programming experience. This unique book-and-video package is a friendly, self-paced beginners guide to the latest release of WordPress. Lessons are focused on practical, everyday tasks that users will need to create and maintain their sites: entering new content, creating new pages, managing menus, making content search-engine friendly. Plus you'll find lots of tips based on years of experience teaching people to use WordPress.

You'll also learn how to extend the functionality of WordPress by using the thousands of plugins available. Connecting to social media, creating membership and e-commerce sites, setting up events calendars, making your site mobile-friendly?these are just some of the plugins you'll be introduced to. Each lesson in the book is supplemented by an instructional video intended to enhance your learning experience. Plus, a trouble-shooting appendix addresses various issues to help you solve any challenges you may face.

Lessons include:

• Installing WordPress
• Admin area overview
• Basic admin settings
• Adding a new post
• Working with the text
• Laying out text
• Advanced post
• The basics of handling media files
• The upload/insert window
• Image options in detail
• Editing and laying out
• Working with image galleries
• Adding video and audio
• Adding documents
• Managing posts and pages
• Managing media files
• Managing post categories and
• Managing widgets and
• The links manager
• Managing comments
• Bringing in content from other sites
• Helping others connect to your site
• Having multiple site users
• Overview of WordPress themes
• Creating a child theme
• Basic customization of your design
• Optimizing your content
• Optimizing your site as a whole
• How is your site doing?
• Keeping up to date
• Backing up your site
• Installing and activating plugins
• Two example plugins
• Other common uses for plugins
• Running multiple sites with WordPress
• Customizing WordPress
• Troubleshooting WordPress

If learning the new WordPress is a pressing issue for you, then this book-and-video package is exactly what you need.

Note: As part of the print version of this title, video lessons are included on DVD. For e-book versions, video lessons can be accessed at wrox.com using a link provided in the interior of the e-book.

Without sufficient practice and preparation for taking the Project Management Institute's (PMI's) PMP certification exam, you won't be able to actually put your skills into practice in the real world! To help you achieve your goal of passing the exam, this two-part prep book covers all elements of the brand-new Project Management Professional exam. A team of experts presents you with a solid overview of the exam as well as hundreds of questions, detailed answers, and explanations. In addition, each question is accompanied by cross-references, providing you with a thorough preparation foundation for taking the PMP exam.

• Features hundreds of short questions-and-answers on some of the most key topics that PMPs should be familiar with before taking the exam
• Includes more than 800 exam-quality questions with detailed answers and explanations, plus more than 200 fill-in-the-blank, true/false, and short answer questions to help you prepare for the exam
• Serves as an ideal complement to Sybex's PMP: Project Management Professional Exam Study Guide, 6th Edition

PMP Practice Makes Perfect prepares you for taking the grueling 200-question, four-hour PMP exam.