Understanding Risk
The Theory and Practice
of Financial Risk Management

This book is aimed at those who wish to understand financial risk management better.
This includes risk managers; their colleagues in trading, banking and other areas of
their fi rms; regulators, auditors and others supporting or overseeing risk takers; and anyone
else with an interest in gaining some intuition into how losses can arise in risk taking and
how the severity and frequency of those losses can be controlled.
Good risk managers require both technical and artisanal skills. Some of the attributes
in a risk manager which are helpful include.