Risk Pricing

Innovativenew approaches to de-risking and pricing financial products

Everyindustry experiences strategic inflection points which throw up bothopportunities as well as threats. The crisis of 2007-2009 was one suchinflection point for the banking and finance industries. A significant part ofthe danger arose from the fact thatrisk pricing of financial products and the existing risk management techniqueswere found desperately wanting and in need of urgent upgrade.

RiskPricing is an insightful guide as to how the financial world got risk sobadly wrong and how it can avoid doing so again. The book explains what therisk pricing problem for financial products really is. It deconstructs the failures of the past, and introduces innovative newapproaches to de-risking and pricing financial products for the future:

Why the response of governments to the 2007-2009 crisis was seriously flawed

The higher order risks the financial industry confronts in the 21st century due to the effects of volatility and complexity and what can be done about it

The discipline of risk management from the virtual economys perspective, including derivative financial instruments

New methods of dealing with legal risk particularly rampant in the virtual economy overleveraging, the risk of poor supervision and its impact on pricing financial products

How the top methodology of physicists quantum electrodynamics (QED) offers a potential solution for de-risking financial products.

Thisis a path breaking book for finance and banking professionals, academics andregulators about comprehensive, accurate and dependable methods of measuring andmanaging risk through a correct pricing of the exposure embedded in variousfinancial products.