Mastering Risk Modelling follows on from Mastering Financial Modelling and develops risk models using the Systematic Modelling Method.   The book is part of the successful Financial Times series 'Mastering'.

Order the book from Systematic or the Financial Times web site, (ISBN 0273659782).   Mastering Risk Modelling provides useful tips and methods for developing Excel applications. In particular, it discusses model design and how to layer risk and uncertainty on to basic models.   Risk is omnipresent in the business world and this book shows an extension of modelling methods through theory, examples and templates. The result is a set of tools and methods to apply to Excel to better understand and manage risk.

Objectives for the Mastering Risk Modelling

• Improve financial managers’ abilities with Excel
• Demonstrate a systematic method of developing Excel models for fast development and error checking
• Provide financial managers with practical templates for applying risk and uncertainty to Excel
• Provide a library of basic templates for further development as an illustration of the methods

Part A of the book reviews model design and outlines a structured design method.

Part B applies finance theory to Excel by summarising the theory in a number of important areas and providing worked solutions:

• Analysing performance
• Introduction and overview
• Review of model design
• Risk and uncertainty
• Project finance model
• Simulation
• Financial analysis
• Credit risk
• Risk management
• Equity valuation
• Equities
• Value at risk
• Bonds
• Credit VaR
• Options