|
Financial Risk Modeling
Financial risk modeling is the use of formal mathematical and econometric techniques to measure, monitor and control the market risk, credit risk, and operational risk on a firm's balance sheet, on a bank's accounting ledger of tradeable financial assets, or of a fund manager's portfolio value; see Financial risk management. Risk modeling is one of many subtasks within the broader area of financial modeling. Application Risk modeling uses a variety of techniques including market risk, value at risk (VaR), historical simulation (HS), or extreme value theory (EVT) in order to analyze a portfolio and make forecasts of the likely losses that would be incurred for a variety of risks. As above, such risks are typically grouped into credit risk, market risk, model risk, liquidity risk, and operational risk categories. Many large financial intermediary firms use risk modeling to help portfolio managers assess the amount of capital reserves to maintain, and to help guide their purcha ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
|
|
Mathematical Finance
Mathematical finance, also known as quantitative finance and financial mathematics, is a field of applied mathematics, concerned with mathematical modeling in the financial field. In general, there exist two separate branches of finance that require advanced quantitative techniques: derivatives pricing on the one hand, and risk and portfolio management on the other. Mathematical finance overlaps heavily with the fields of computational finance and financial engineering. The latter focuses on applications and modeling, often with the help of stochastic asset models, while the former focuses, in addition to analysis, on building tools of implementation for the models. Also related is quantitative investing, which relies on statistical and numerical models (and lately machine learning) as opposed to traditional fundamental analysis when managing portfolios. French mathematician Louis Bachelier's doctoral thesis, defended in 1900, is considered the first scholarly work on ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
|
 |
Benoît Mandelbrot
Benoit B. Mandelbrot (20 November 1924 – 14 October 2010) was a Polish-born French-American mathematician and polymath with broad interests in the practical sciences, especially regarding what he labeled as "the art of #Fractals and the "theory of roughness", roughness" of physical phenomena and "the uncontrolled element in life". He referred to himself as a "fractalist" and is recognized for his contribution to the field of fractal geometry, which included coining the word "fractal", as well as developing a theory of "roughness and self-similarity" in nature. In 1936, at the age of 11, Mandelbrot and his family emigrated from Warsaw, Poland, to France. After World War II ended, Mandelbrot studied mathematics, graduating from universities in Paris and in the United States and receiving a master's degree in aeronautics from the California Institute of Technology. He spent most of his career in both the United States and France, having Multiple citizenship, dual French nati ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
 |
The Economist
''The Economist'' is a British newspaper published weekly in printed magazine format and daily on Electronic publishing, digital platforms. It publishes stories on topics that include economics, business, geopolitics, technology and culture. Mostly written and edited in London, it has other editorial offices in the United States and in major cities in continental Europe, Asia, and the Middle East. The newspaper has a prominent focus on data journalism and interpretive analysis over News media, original reporting, to both criticism and acclaim. Founded in 1843, ''The Economist'' was first circulated by Scottish economist James Wilson (businessman), James Wilson to muster support for abolishing the British Corn Laws (1815–1846), a system of import tariffs. Over time, the newspaper's coverage expanded further into political economy and eventually began running articles on current events, finance, commerce, and British politics. Throughout the mid-to-late 20th century, it greatl ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
 |
Financial Times
The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and also published digitally that focuses on business and economic Current affairs (news format), current affairs. Based in London, the paper is owned by a Japanese holding company, Nikkei, Inc., Nikkei, with core editorial offices across Britain, the United States and continental Europe. In July 2015, Pearson plc, Pearson sold the publication to Nikkei for Pound sterling, £844 million (US$1.32 billion) after owning it since 1957. In 2019, it reported one million paying subscriptions, three-quarters of which were digital subscriptions. In 2023, it was reported to have 1.3 million subscribers of which 1.2 million were digital. The newspaper has a prominent focus on Business journalism, financial journalism and economic analysis rather than News media, generalist reporting, drawing both criticism and acclaim. It sponsors an Financial Times and McKinsey Business Book of the Year Award, annual book ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
|
Random House
Random House is an imprint and publishing group of Penguin Random House. Founded in 1927 by businessmen Bennett Cerf and Donald Klopfer as an imprint of Modern Library, it quickly overtook Modern Library as the parent imprint. Over the following decades, a series of acquisitions made it into one of the largest publishers in the United States. In 2013, it was merged with Penguin Group to form Penguin Random House, which is owned by the Germany-based media conglomerate Bertelsmann. Penguin Random House uses its brand for Random House Publishing Group and Random House Children's Books, as well as several imprints. Company history 20th century Random House was founded in 1927 by Bennett Cerf and Donald Klopfer, two years after they acquired the Modern Library imprint from publisher Horace Liveright, which reprints classic works of literature. Cerf is quoted as saying, "We just said we were going to publish a few books on the side at random", which suggested the name Random ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
|
 |
2008 Financial Crisis
The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners and financial institutions that led to the 2000s United States housing bubble, exacerbated by predatory lending for subprime mortgages and deficiencies in regulation. Cash out refinancings had fueled an increase in consumption that could no longer be sustained when home prices declined. The first phase of the crisis was the subprime mortgage crisis, which began in early 2007, as mortgage-backed securities (MBS) tied to U.S. real estate, and a vast web of Derivative (finance), derivatives linked to those MBS, collapsed in value. A liquidity crisis spread to global institutions by mid-2007 and climaxed with the bankruptcy of Lehman Brothers in September 2008, which triggered a stock market crash and bank runs in several countries. The crisis ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
 |
Sarbanes–Oxley Act
The Sarbanes–Oxley Act of 2002 is a United States federal law that mandates certain practices in financial record keeping and reporting for corporations. The act, , also known as the "Public Company Accounting Reform and Investor Protection Act" (in the Senate) and "Corporate and Auditing Accountability, Responsibility, and Transparency Act" (in the House) and more commonly called Sarbanes–Oxley, SOX or Sarbox, contains eleven sections that place requirements on all American public company boards of directors and management and public accounting firms. A number of provisions of the Act also apply to privately held companies, such as the willful destruction of evidence to impede a federal investigation. The law was enacted as a reaction to a number of major corporate and accounting scandals, including Enron and WorldCom. The sections of the bill cover responsibilities of a public corporation's board of directors, add criminal penalties for certain misconduct, and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
 |
Enron
Enron Corporation was an American Energy development, energy, Commodity, commodities, and services company based in Houston, Texas. It was led by Kenneth Lay and developed in 1985 via a merger between Houston Natural Gas and InterNorth, both relatively small regional companies at the time of the merger. Before its bankruptcy on December 2, 2001, Enron employed approximately 20,600 staff and was a major electricity, natural gas, communications, and pulp and paper industry, pulp and paper company, with claimed revenues of nearly $101 billion during 2000. ''Fortune (magazine), Fortune'' named Enron "America's Most Innovative Company" for six consecutive years. At the end of 2001, it was revealed that Enron's reported financial condition was sustained by an institutionalized, systematic, and creatively planned accounting scandals, accounting fraud, known since as the Enron scandal. Enron became synonymous with willful, institutional fraud and systemic Corporate crime, corruptio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
|
Corporate Scandals
A corporate collapse typically involves the insolvency or bankruptcy of a major business enterprise. A corporate scandal involves alleged or actual unethical behavior by people acting within or on behalf of a corporation. Many recent corporate collapses and scandals have involved some type of false or inappropriate accounting (see list at accounting scandals). List of major corporate collapses The following list of corporations involved major collapses, through the risk of job losses or size of the business, and meant entering into insolvency or bankruptcy, or being nationalised or requiring a non-market loan by a government. List of scandals without insolvency * Australia & New Zealand Banking Group scandal involving misleading file notes in the Financial Ombudsman Service (Australia) presented to the Supreme Court of Victoria. * Australia & New Zealand Banking Group allegations of racial bigotry toward billionaire businessman Pankaj Oswal and his wife. Court was present ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
|
|
Risk Analysis (Business)
Risk analysis is the process of identifying and assessing risks that may jeopardize an organization's success. It typically fits into a larger risk management framework. Diligent risk analysis helps construct preventive measures to reduce the probability of Incident (security), incidents from occurring, as well as counter-measures to address incidents as they develop to minimize negative impacts on the organization. A popular method to perform risk analysis on IT systems is called ''facilitated risk analysis process'' (FRAP). Facilitated risk analysis process FRAP analyzes one system, application or segment of business processes at a time. FRAP assumes that additional efforts to develop precisely quantified risks are not cost-effective because: * such estimates are time-consuming * risk documentation becomes too voluminous for practical use * specific loss estimates are generally not needed to determine if controls are needed. * without assumptions, there is little risk analysi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
|
 |
Standard Deviation
In statistics, the standard deviation is a measure of the amount of variation of the values of a variable about its Expected value, mean. A low standard Deviation (statistics), deviation indicates that the values tend to be close to the mean (also called the expected value) of the set, while a high standard deviation indicates that the values are spread out over a wider range. The standard deviation is commonly used in the determination of what constitutes an outlier and what does not. Standard deviation may be abbreviated SD or std dev, and is most commonly represented in mathematical texts and equations by the lowercase Greek alphabet, Greek letter Sigma, σ (sigma), for the population standard deviation, or the Latin script, Latin letter ''s'', for the sample standard deviation. The standard deviation of a random variable, Sample (statistics), sample, statistical population, data set, or probability distribution is the square root of its variance. (For a finite population, v ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
 |
Fat-tailed Distribution
A fat-tailed distribution is a probability distribution that exhibits a large skewness or kurtosis, relative to that of either a normal distribution or an exponential distribution. In common usage, the terms fat-tailed and Heavy-tailed distribution, heavy-tailed are sometimes synonymous; fat-tailed is sometimes also defined as a subset of heavy-tailed. Different research communities favor one or the other largely for historical reasons, and may have differences in the precise definition of either. Fat-tailed distributions have been empirically encountered in a variety of areas: physics, earth sciences, economics and political science. The class of fat-tailed distributions includes those whose tails decay like a power law, which is a common point of reference in their use in the scientific literature. However, fat-tailed distributions also include other slowly-decaying distributions, such as the log-normal distribution, log-normal. The extreme case: a power-law distribution The ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |