The definitive guide for any professional risk management in the financial services industry, Foundational Theories and Techniques for Risk Management provides a complete reference for financial theory and application, financial instruments, and the financial markets.

Part I provides details for financial risk managers managing risk in all areas of finance, from insurance and banking to asset management and institutional investing. Ten experts from around the world discuss every aspect of finance theory and how it is intertwined with the process of risk management. Beginning with an overview of risk and risk aversion, this resource delivers a comprehensive introduction to portfolio mathematics that includes discussion of the efficient frontier, portfolio theory, and the concept of portfolio diversification.