Building Your Wings on the Way Down: Wilmott Magazine Article – Aaron Brown

And while you’re at it, learn to play poker too.

Ray Bradbury famously defined “living at risk” as jumping off a cliff and building your wings on the way down. Too many financial risk managers who came late to the field think of risk as a passive bad thing to be minimized, an unfortunate by-product of profit-making activities, like air pollution, neckties or meetings

Logged-in members can download the article by clicking the link below. To log in or register visit here.

Related Posts

Scenarios IV: Planning for Disasters and then Deal... As I write this it is the fourth anniversary of September 11, 2001. Aside from the anniversary specials airing today, there is little in the news ...
Product Risk Classification What is the PRC? The product risk classification (PRC) is a risk indicator that is based on quantitative models. It allows us to compare the fi...
A Conditional Valuation Approach for Path-Dependen... In an effort to improve credit risk management, financial institutions have developed various measures to manage their exposure to counterparty risk. ...
Finformatics: How to Measure Really Small Things Traders in financial assets implicitly compare the trading price to the stream of dividends the assets stand to generate. Clearly, a key determina...
A VaR-based Model for the Yield Curve An intuitive model for the yield curve, based on the notion of value-at-risk, is presented. It leads to interest rates that hedge against potentia...
Pricing Rainbow Options A previous paper (West 2005) tackled the issue of calculating accurate uni-, bi- and trivariate normal probabilities. This has important applicati...
Valuation of American Call Options The purpose of this paper is to provide an analytical solution for American call options assuming proportional dividends. Proportional dividends are m...
Life Settlements and Viaticals In this chapter… • life • sex • death 1 Introduction And now for something completely. . .morbid. Life settlements and viaticals are contra...
120719_brown