4. The Term Structure of Risk, the Role of Known and Unknown Risks, and Nonstationary Distributions

Chapters in this book

1. Frontmatter i
2. Contents v
3. Preface vii
4. 1. Introduction 1
5. 2. Risk: A Decision Maker’S Perspective 31
6. 3. Mild Vs. Wild Randomness: Focusing on Those Risks that Matter 47
7. 4. The Term Structure of Risk, the Role of Known and Unknown Risks, and Nonstationary Distributions 59
8. 5. Crisis and Noncrisis Risk in Financial Markets: A Unified Approach to Risk Management 74
9. 6. What We Know, Don’t Know, and Can’t Know about Bank Risk: A View from the Trenches 103
10. 7. Real Estate through the Ages: The Known, the Unknown, and the Unknowable 145
11. 8. Reflections on Decision-making under Uncertainty 164
12. 9. On the Role of Insurance Brokers in Resolving the Known, the Unknown, and the Unknowable 194
13. 10. Insuring against Catastrophes 210
14. 11. Managing Increased Capital Markets Intensity: The Chief Financial Officer’s Role in Navigating the Known, the Unknown, and the Unknowable 239
15. 12. The Role of Corporate Governance in Coping with Risk and Unknowns 277
16. 13. Domestic Banking Problems 286
17. 14. Crisis Management: The Known, The Unknown, and the Unknowable 296
18. 15. Investing in the Unknown and Unknowable 304
19. List of Contributors 347
20. Index 359