Mastering Risk Modelling

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 dont 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

Inhaltsverzeichnis:

       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

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