THOMAS S. COLEMAN has worked in the finance industry for more than twenty years and has considerable experience in trading, risk management, and quantitative modeling. Mr. Coleman currently manages a risk advisory consulting firm. He is the author, together with Roger Ibbotson and Larry Fisher, of Historical U.S. Treasury Yield Curves.

• Foreword ixPreface xiiiAcknowledgments xviiPART ONE Managing Risk 1CHAPTER 1 Risk Management versus Risk Measurement 3CHAPTER 2 Risk, Uncertainty, Probability, and Luck 15CHAPTER 3 Managing Risk 67CHAPTER 4 Financial Risk Events 101CHAPTER 5 Practical Risk Techniques 137CHAPTER 6 Uses and Limitations of Quantitative Techniques 169PART TWO Measuring Risk 173CHAPTER 7 Introduction to Quantitative Risk Measurement 175CHAPTER 8 Risk and Summary Measures: Volatility and VaR 187CHAPTER 9 Using Volatility and VaR 269CHAPTER 10 Portfolio Risk Analytics and Reporting 311CHAPTER 11 Credit Risk 377CHAPTER 12 Liquidity and Operational Risk 481CHAPTER 13 Conclusion 529About the Companion Web Site 531References 533About the Author 539Index 541

THOMAS S. COLEMAN has worked in the finance industry for more than twenty years and has considerable experience in trading, risk management, and quantitative modeling. Mr. Coleman currently manages a risk advisory consulting firm. He is the author, together with Roger Ibbotson and Larry Fisher, of Historical U.S. Treasury Yield Curves.

• Foreword ixPreface xiiiAcknowledgments xviiPART ONE Managing Risk 1CHAPTER 1 Risk Management versus Risk Measurement 3CHAPTER 2 Risk, Uncertainty, Probability, and Luck 15CHAPTER 3 Managing Risk 67CHAPTER 4 Financial Risk Events 101CHAPTER 5 Practical Risk Techniques 137CHAPTER 6 Uses and Limitations of Quantitative Techniques 169PART TWO Measuring Risk 173CHAPTER 7 Introduction to Quantitative Risk Measurement 175CHAPTER 8 Risk and Summary Measures: Volatility and VaR 187CHAPTER 9 Using Volatility and VaR 269CHAPTER 10 Portfolio Risk Analytics and Reporting 311CHAPTER 11 Credit Risk 377CHAPTER 12 Liquidity and Operational Risk 481CHAPTER 13 Conclusion 529About the Companion Web Site 531References 533About the Author 539Index 541

THOMAS S. COLEMAN has worked in the finance industry for more than twenty years and has considerable experience in trading, risk management, and quantitative modeling. Mr. Coleman currently manages a risk advisory consulting firm. He is the author, together with Roger Ibbotson and Larry Fisher, of Historical U.S. Treasury Yield Curves.

• Foreword ixPreface xiiiAcknowledgments xviiPART ONE Managing Risk 1CHAPTER 1 Risk Management versus Risk Measurement 3CHAPTER 2 Risk, Uncertainty, Probability, and Luck 15CHAPTER 3 Managing Risk 67CHAPTER 4 Financial Risk Events 101CHAPTER 5 Practical Risk Techniques 137CHAPTER 6 Uses and Limitations of Quantitative Techniques 169PART TWO Measuring Risk 173CHAPTER 7 Introduction to Quantitative Risk Measurement 175CHAPTER 8 Risk and Summary Measures: Volatility and VaR 187CHAPTER 9 Using Volatility and VaR 269CHAPTER 10 Portfolio Risk Analytics and Reporting 311CHAPTER 11 Credit Risk 377CHAPTER 12 Liquidity and Operational Risk 481CHAPTER 13 Conclusion 529About the Companion Web Site 531References 533About the Author 539Index 541