Extremes and Integrated Risk Management

Table of Contents

Introduction
Paul Embrechts
xv
The Bell Curve is Wrong: So What?
Paul Embrechts
 
xxv
  BASIC EXTREME VALUE THEORY

1. Extreme Value Theory for Risk Managers
Alexander J. McNeil
3
2. Measuring Risk with Extreme Value Theory
Richard L. Smith
19
3. Adaptive Threshold Selection in Tail Index Estimation
Gunther Matthys and Jan Beirlant
37
4. Pitfalls and Opportunities in the Use of Extreme Value Theory in Risk Management
Francis X. Diebold, Til Schuermann and John D. Stroughair
51
5. Modelling Multivariate Extremes
Paul Embrechts, Laurens de Haan and Xin Huang
 
59
  RISK MEASURES AND EXTREME VALUE THEORY

6. Correlation: Pitfalls and Alternatives
Paul Embrechts, Alexander J. McNeil and Daniel Straumann
71
7. Thinking Coherently
Philippe Artzner, Freddy Delbaen, Jean-Marc Eber and David Heath
 
77
  APPLICATIONS TO FINANCE

8. Value-at-Risk and Extreme Returns
Jon Danielsson and Casper G. de Vries
85
9. Reading the Riskometer
Alexander J. McNeil
107
10. Extreme Value Theory: An Empirical Analysis of Equity Risk
John Gavin
115
11. From Value at Risk to Stress Testing: the Extreme Value Approach
François M. Longin
125
12. Is it Really Long Memory we See in Financial Returns?
Thomas Mikosch and Catalin Starica
149
13. Multivariate Extremes for Foreign Exchange Data
Catalin Starica
169
14. Extremal Spill-Overs in Financial Markets
Stefan Straetmans
187
15. Modelling and Measuring Operational Risk
Marcelo Cruz, Rodney Coleman and Gerry Salkin
 
205
  APPLICATIONS TO INSURANCE

16. Extreme Value Statistics and Wind Storm Losses: A Case Study
Holger Rootzén and Nader Tajvidi
215
17. Bayesian Risk Analysis
Richard L. Smith and Dougal Goodman
235
18. Developing Scenarios for Future Extreme Losses Using the Peaks-over-Threshold Method
Alexander J. McNeil and Thomas Saladin
253


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