Risk Mechanics is the first "how to" book written for derivatives professionals. It is neither simplistic nor unnecessarily theoretical. This book reveals for the first time many practical secrets known previously to an elite few. These include techniques such as the new Dimensionless Risk and related fundamental risk numbers such as spotik, voltime and valspot along with Multirisk, AAA Hedge, bin technique and many subtle forms of information such as gamma smiles.
Most professionals will be suprised how easy it is to discover hidden risk holes in many of their most basic risk calculations. For example, 10 sources of possible error are identified in the market risk calculations of a simple FRA. The risk techniques explored provide a "risk tool box" from which solutions to a vast number of practical everyday risk problems can be devised.
Risk Mechanics, written by the inventor of the Universal Risk Machine, is the one that many professionals have been waiting for and yet some others hoped would never be published. It is a practical user guide for derivatives risk managers, particularly bankers and risk auditors as well as those aspiring to work in the derivatives industry.
The following is the table of contents.
Contents
