Abstract
The art of market risk measurement and control has reached a state today that is impressive by any standard. Recent academic developments (notably based on option pricing), new tools (VaR and its variations), new instruments (with the continuously renewed derivative contracts), new institutions (for example the importance assumed by risk management departments in banks) have all converged to provide a remarkable understanding and mastery of market risk, whether interest rate, foreign exchange or stock markets. Of course our deepened understanding has also confirmed what we cannot understand — forecasting and asset pricing have particularly been under stress. But overall the advancement of finance in market risk is both obvious and a guarantee of further advancements in the field, and other the clear promise of rocket science discoveries continuously to upgrade our knowledge and techniques.
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© 2001 Palgrave Macmillan, a division of Macmillan Publishers Limited
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Cossin, D. (2001). Credit Risk: The New Frontier of Risk Management. In: Mikdashi, Z. (eds) Financial Intermediation in the 21st Century. Palgrave Macmillan, London. https://doi.org/10.1057/9780230294127_21
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DOI: https://doi.org/10.1057/9780230294127_21
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