Mastering Risk Modelling
Description
Risks are everywhere in the business world. Mastering Risk Modelling provides the busy financial manager with useful tips andpractical templates for assessing, applying and modelling risk and uncertainty in Excel. The book is designed specifically to be of help to you if you don?t have time to start from scratch ? it will improve your abilities in Excel and give you a library of basic examples that you can use as a basis for further development.
It covers:
? Review of model design
? Risk and uncertainty
? Credit risk
? Project finance
? Financial analysis
? Valuation
? Options
? Bonds
? Equities
? Value at risk
? Simulation
This second edition contains brand new chapters:
? Revised models
? More material on credit risk modelling e.g. portfolios, bankruptcy models
? Shows dual 2003/2007 Excel key strokes
? More theory especially on statistics in Excel
? Basic statistics in Excel ? tools and methods
? Capacity to borrow and repay
? Finding optimum mix of risk and return
? Fixed income risk models
? Visual Basic approach
More details
Other editions
Previous edition
Person
Content
Conventions
Overview
1 Introduction
Scope of the book
Example model
Objectives of risk modelling
Summary
2 Review of model design
Introduction
Design objectives
Common errors
Excel features
Formats
Number formats
Lines and borders
Colour and patterns
Specific colour for inputs and results
Data validation
Controls ? combo boxes and buttons
Conditional formatting
Use of functions and types of functions
Add-ins for more functions
Text and updated labels
Recording a version number, author, etc.
Using names
Pasting a names table
Comment cells
Graphics
Dynamic graphs to plot individual series
Data tables
Scenarios
Spreadsheet auditing
Summary
3 Risk and uncertainty
Introduction
Risk
Uncertainty
Response to risk
Methods
Summary
4 Project finance
Introduction
Requirements
Advantages
Risks
Risk analysis
Risk mitigation
Financial model
Inputs
Sensitivity and cost of capital
Construction, borrowing and output
Accounting schedules
Management analysis and summaries
Summary
5 Simulation
Introduction
Building blocks
Procedure
Real estate example
Summary
6 Financial analysis
Introduction