The Known, the Unknown, and the Unknowable in Financial Risk Management
Measurement and Theory Advancing Practice
Bibliographic Data
| ID | 23786154 |
|---|---|
| Authors | Richard Herring |
| Editors | Francis X Diebold, Neil A Doherty, Richard J Herring |
| Year | 2010 |
| Publication date | 2010-12-31 |
| Open Access | No |
| Type | BOOK |
| Venue | Known, the Unknown, and the Unknowable in Financial Risk Management (SOURCE_BOOK) |
| Publisher | Princeton University Press (PUBLISHER • US) |
| DOI | 10.1515/9781400835287 |
| OpenAlex | W2251059835 |
| ISBN | 9781400835287 |
| Language | EN |
| Citations received | 5 |
| References cited | 1 |
A clear understanding of what we know, don't know, and can't know should guide any reasonable approach to managing financial risk, yet the most widely used measure in finance today--Value at Risk, or VaR--reduces these risks to a single number, creating a false sense of security among risk managers, executives, and regulators. This book introduces a more realistic and holistic framework called KuU --the K nown, the u nknown, and the U nknowable--that enables one to conceptualize the different kinds of financial risks and design effective strategies for managing them. Bringing together contributions by leaders in finance and economics, this book pushes toward robustifying policies, portfolios, contracts, and organizations to a wide variety of KuU risks. Along the way, the strengths and limitations of "quantitative" risk management are revealed. In addition to the editors, the contributors are Ashok Bardhan, Dan Borge, Charles N. Bralver, Riccardo Colacito, Robert H. Edelstein, Robert F. Engle, Charles A. E. Goodhart, Clive W. J. Granger, Paul R. Kleindorfer, Donald L. Kohn, Howard Kunreuther, Andrew Kuritzkes, Robert H. Litzenberger, Benoit B. Mandelbrot, David M. Modest, Alex Muermann, Mark V. Pauly, Til Schuermann, Kenneth E. Scott, Nassim Nicholas Taleb, and Richard J. Zeckhauser. Introduces a new risk-management paradigm Features contributions by leaders in finance and economics Demonstrates how "killer risks" are often more economic than statistical, and crucially linked to incentives Shows how to invest and design policies amid financial uncertainty
Business · Financial management · Financial plan · Financial risk · Financial stability · Risk management · Banking stability, regulation, efficiency · Credit Risk and Financial Regulations · Finance · Financial Markets and Investment Strategies · Housing, Finance, and Neoliberalism · Leadership, Behavior, and Decision-Making Studies · Management and Organizational Studies
| Unique citing works | 5 |
|---|---|
| Citations per year | 0,36 |
| Citation span | 2012 - 2025 (14) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 4 |