
Modeling Risk
Applying Monte Carlo Simulation, Real Options Analysis, Forecasting, and Optimization Techniques
Johnathan Mun(Author)
Wiley (Publisher)
1st Edition
Published on 1. June 2006
Book
Hardback
624 pages
978-0-471-78900-0 (ISBN)
Article exhausted; check for reprint
Description
Modeling Risk, the completely revised and updated edition of Applied Risk Analysis, includes many new case studies in modeling risk and uncertainty, and a new risk analysis CD-ROM prepared by Dr. Johnathan Mun. The new CD-ROM includes the author's Risk Simulator and Real Options Super Lattice Solver software, as well as many useful spreadsheet models.
"Johnathan Mun has previously published a number of very popular books dealing with different aspects of risk analysis-associated techniques and tools. This last publication puts all the pieces together. The book is really unavoidable for any professional who wants to address risk evaluation following a logical, concrete, and conclusive approach."
-Jean Louis Vaysse, Deputy Vice President, Marketing, Airbus (France)
"Dr. Mun breaks through the hyperbole and presents a clear, step-by-step approach revealing to readers how quantitative methods and tools can truly make a difference. In short, he teaches you what is relevant and is a 'must know.' I highly recommend this book, especially if you want to effectively incorporate the latest technologies into your decision-making process for your real-world business."
-Dr. Paul W. Finnegan, MD, MBA, Vice President, Commercial Operations and Development, Alexion Pharmaceuticals, Inc.
"A must-read for product portfolio managers. it captures the risk exposure of strategic investments, and provides management with estimates of potential outcomes and options for risk mitigation."
-Rafael E. Gutierrez, Executive Director of Strategic Marketing and Planning, Seagate Technology, Inc.
"Once again, Dr. Mun has created a 'must-have, must-read' book for anyone interested in the practical application of risk analysis. Other books speak in academic generalities, or focus on one area of risk application. [This book] gets to the heart of the matter with applications for every area of risk analysis. You have a real option to buy almost any book-you should exercise your option and get this one!"
-Glenn Kautt, MBA, CFP, EA, President and Chairman, The Monitor Group, Inc.
"Johnathan Mun's book is a sparkling jewel in my finance library. Mun demonstrates a deep understanding of the underlying mathematical theory in his ability to reduce complex concepts to lucid explanations and applications. For this reason, he's my favorite writer in this field."
-Janet Tavakoli, President, Tavakoli Structured Finance, Inc. and author of Collateralized Debt Obligations and Structured Finance
"Every year the market of managerial books is flooded again and again. This book is different. It puts a valuable tool into the hands of corporate managers who are willing to stand up against uncertainties and risks and are determined to deliver value to shareholder and society, even in rough times. It is a book for the new generation of managers, for whom Corporate America is waiting."
-Dr. Markus Götz Junginger, Managing Partner, IBCOL Consulting AG (Switzerland)
"Johnathan Mun has previously published a number of very popular books dealing with different aspects of risk analysis-associated techniques and tools. This last publication puts all the pieces together. The book is really unavoidable for any professional who wants to address risk evaluation following a logical, concrete, and conclusive approach."
-Jean Louis Vaysse, Deputy Vice President, Marketing, Airbus (France)
"Dr. Mun breaks through the hyperbole and presents a clear, step-by-step approach revealing to readers how quantitative methods and tools can truly make a difference. In short, he teaches you what is relevant and is a 'must know.' I highly recommend this book, especially if you want to effectively incorporate the latest technologies into your decision-making process for your real-world business."
-Dr. Paul W. Finnegan, MD, MBA, Vice President, Commercial Operations and Development, Alexion Pharmaceuticals, Inc.
"A must-read for product portfolio managers. it captures the risk exposure of strategic investments, and provides management with estimates of potential outcomes and options for risk mitigation."
-Rafael E. Gutierrez, Executive Director of Strategic Marketing and Planning, Seagate Technology, Inc.
"Once again, Dr. Mun has created a 'must-have, must-read' book for anyone interested in the practical application of risk analysis. Other books speak in academic generalities, or focus on one area of risk application. [This book] gets to the heart of the matter with applications for every area of risk analysis. You have a real option to buy almost any book-you should exercise your option and get this one!"
-Glenn Kautt, MBA, CFP, EA, President and Chairman, The Monitor Group, Inc.
"Johnathan Mun's book is a sparkling jewel in my finance library. Mun demonstrates a deep understanding of the underlying mathematical theory in his ability to reduce complex concepts to lucid explanations and applications. For this reason, he's my favorite writer in this field."
-Janet Tavakoli, President, Tavakoli Structured Finance, Inc. and author of Collateralized Debt Obligations and Structured Finance
"Every year the market of managerial books is flooded again and again. This book is different. It puts a valuable tool into the hands of corporate managers who are willing to stand up against uncertainties and risks and are determined to deliver value to shareholder and society, even in rough times. It is a book for the new generation of managers, for whom Corporate America is waiting."
-Dr. Markus Götz Junginger, Managing Partner, IBCOL Consulting AG (Switzerland)
More details
Series
Edition
1., Auflage
Language
English
Place of publication
New York
United States
Publishing group
John Wiley and Sons Ltd
Target group
Professional and scholarly
Edition type
New edition
Illustrations
Illustrations
Dimensions
Height: 23.1 cm
Width: 15.9 cm
Thickness: 49 mm
Weight
878 gr
ISBN-13
978-0-471-78900-0 (9780471789000)
Schweitzer Classification
Other editions
New editions

Johnathan Mun
Modeling Risk
Applying Monte Carlo Risk Simulation, Strategic Real Options, Stochastic Forecasting, and Portfolio Optimization. Plus DVD
Book
07/2010
2nd Edition
Wiley
€129.00
Article is exhausted; no reprint
Previous edition

Book
01/2004
1st Edition
Wiley
€92.90
Article exhausted; check for reprint
Person
JOHNATHAN MUN, PHD, is the founder and CEO of Real Options Valuation, Inc., as well as the creator of the Real Options Super Lattice Solver software for real options valuation and Risk Simulator Monte Carlo simulation software. Prior to starting his own firm, he was the vice president of analytics at Decisioneering, Inc. Mun is also a full professor at the U.S. Naval Postgraduate School (California) and the University of Applied Sciences (Switzerland and Germany). He has authored numerous books, including Real Options Analysis, Real Options Analysis Course, Applied Risk Analysis (the first edition of Modeling Risk), and Valuing Employee Stock Options (all published by Wiley). Mun has also taught and consulted for over 300 corporations in twenty countries worldwide on risk analysis and real options, and is considered a leading authority on real options and risk analysis.
Content
Introduction.
PART ONE: Risk Identification.
Chapter 1: Moving Beyond Uncertainty.
PART TWO: Risk Evaluation.
Chapter 2: From Risk to Riches.
Chapter 3: A Guide to Model-Building Etiquette.
PART THREE: Risk Quantification.
Chapter 4: On the Shores of Monaco.
Chapter 5: Test Driving Risk Simulator.
Chapter 6: Pandora's Toolbox.
PART FOUR: Industry Applications.
CHAPTER 7: Extended Business Cases I:
Pharmaceutical and Biotech Negotiations, Oil and Gas Exploration, Financial Planning with Simulation, Hospital Risk Management, and Risk-Based Executive Compensation Valuation.
PART FIVE: Risk Prediction.
Chapter 8: Tomorrow's Forecast Today.
Chapter 9: Using the Past to Predict the Future.
Appendix A--Forecast Intervals.
Appendix B--Ordinary Least Squares.
Appendix C--Detecting and Fixing Heteroskedasticity.
Appendix D--Detecting and Fixing Multicollinearity.
Appendix E--Detecting and Fixing Autocorrelation.
PART SIX: Risk Diversification.
Chapter 10: The Search for the Optimal Decision.
Chapter 11: Optimization Under Uncertainty.
PART SEVEN: Risk Mitigation.
Chapter 12: What Is So Real About Real Options, and Why Are They Optional?
Chapter 13: The Black Box Made Transparent: Real Options Super Lattice Solver Software.
PART EIGHT: More Industry Applications.
Chapter 14: Extended Business Cases II:
Real Estate, Banking, Military Strategy, Automotive Aftermarkets, Global Earth Observation Systems, and Employee Stock Options.
PART NINE: Risk Management.
Chapter 15: The Warning Signs.
Chapter 16: Changing a Corporate Culture.
Answers to End of Chapter Questions and Exercises.
About the CD-ROM.
Index.
PART ONE: Risk Identification.
Chapter 1: Moving Beyond Uncertainty.
PART TWO: Risk Evaluation.
Chapter 2: From Risk to Riches.
Chapter 3: A Guide to Model-Building Etiquette.
PART THREE: Risk Quantification.
Chapter 4: On the Shores of Monaco.
Chapter 5: Test Driving Risk Simulator.
Chapter 6: Pandora's Toolbox.
PART FOUR: Industry Applications.
CHAPTER 7: Extended Business Cases I:
Pharmaceutical and Biotech Negotiations, Oil and Gas Exploration, Financial Planning with Simulation, Hospital Risk Management, and Risk-Based Executive Compensation Valuation.
PART FIVE: Risk Prediction.
Chapter 8: Tomorrow's Forecast Today.
Chapter 9: Using the Past to Predict the Future.
Appendix A--Forecast Intervals.
Appendix B--Ordinary Least Squares.
Appendix C--Detecting and Fixing Heteroskedasticity.
Appendix D--Detecting and Fixing Multicollinearity.
Appendix E--Detecting and Fixing Autocorrelation.
PART SIX: Risk Diversification.
Chapter 10: The Search for the Optimal Decision.
Chapter 11: Optimization Under Uncertainty.
PART SEVEN: Risk Mitigation.
Chapter 12: What Is So Real About Real Options, and Why Are They Optional?
Chapter 13: The Black Box Made Transparent: Real Options Super Lattice Solver Software.
PART EIGHT: More Industry Applications.
Chapter 14: Extended Business Cases II:
Real Estate, Banking, Military Strategy, Automotive Aftermarkets, Global Earth Observation Systems, and Employee Stock Options.
PART NINE: Risk Management.
Chapter 15: The Warning Signs.
Chapter 16: Changing a Corporate Culture.
Answers to End of Chapter Questions and Exercises.
About the CD-ROM.
Index.