As business has globalised and markets have grown more sophisticated, the task of managing financial risk has become ever more challenging. Financial markets have long been a highly complex form of human behaviour. In theory each bid and offer adds new information, but in practice it mostly adds noise. Now, in the 21st century, the noise from newswires, websites, radio, television, newspapers and magazines become quite difficult.
Dealing with Financial Risk makes sense of what financial risk management involves in both theory and practice. The book begins with the growth in financial markets and market theory and goes on to look at some spectacular failures of risk management and the lessons that can be learned from them.
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