Chapter

Introduction

Mark Carey and René M. Stulz

in The Risks of Financial Institutions

Published by University of Chicago Press

Published in print February 2007 | ISBN: 9780226092850
Published online February 2013 | e-ISBN: 9780226092980 | DOI: http://dx.doi.org/10.7208/chicago/9780226092980.003.0001
Introduction

Show Summary Details

Preview

This book advances the understanding, measurement, and management of financial institution risk. It addresses the determinants and measurement of risks at the level of individual institutions, as well as the determinants of systemic risk in a world where individual financial institutions measure and manage risk using approaches developed over the last twenty years. It also describes how interconnected the changes in progress are, and advocates the importance of continuing efforts to understand them. Risk management maximizes the wealth of its shareholders. Model risk denotes the risk institutions face because of model errors. Financial institutions find it difficult to aggregate firmwide risks. Risk management should help firms take risks that make money for them and avoid those that do not. Finally, an overview of the chapters included in this book is provided.

Keywords: financial institution risk; measurement; risk management; systemic risk; wealth; model risk; model errors

Chapter.  11414 words. 

Subjects: Financial Markets

Full text: subscription required

How to subscribe Recommend to my Librarian

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.