Tag Archives: Risk

The Nikkei 225 index

The Nikkei 225 index In this article, Nithisha CHALLA (ESSEC Business School, Grande Ecole Program – Master in Management, 2021-2023) presents the Nikkei 225 index and details its characteristics. The Nikkei 225 index The Nikkei 225 index is considered as … Continue reading

Posted in Contributors, Financial techniques | Tagged , , , , | Leave a comment

Implied Volatility

In this article, Jayati WALIA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) explains how implied volatility is computed from option market prices and a option pricing model. Introduction Volatility is a measure of fluctuations observed in … Continue reading

Posted in Contributors, Financial techniques | Tagged , , , , , , , | Leave a comment

Risk Aversion

Risk Aversion In this article, Diana Carolina SARMIENTO PACHON (ESSEC Business School, Master in Strategy & Management of International Business (SMIB), 2021-2022) explains the economic concept of risk aversion, which is key to understand the behavior of participants in financial … Continue reading

Posted in Contributors, Financial techniques | Tagged , | Leave a comment

The incredible story of Nick Leeson & the Barings Bank

The incredible story of Nick Leeson & the Barings Bank In this article, Louis DETALLE (ESSEC Business School, Grande Ecole Program – Master in Management, 2020-2023) looks back at the bank fraud of Nick Leeson, a trader at Barings, which … Continue reading

Posted in Contributors, Evénements | Tagged , , , , , | Leave a comment

What happened between Bruno Iksil & JP Morgan

What happened between Bruno Iksil & JP Morgan In this article, Louis DETALLE (ESSEC Business School, Grande Ecole Program – Master in Management, 2020-2023) explains how Bruno Iksil, a French trader working in London made inconsiderate trades in the name … Continue reading

Posted in Contributors, Evénements | Tagged , , , , | Leave a comment

The historical method for VaR calculation

In this article, Jayati WALIA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents the historical method for VaR calculation. Introduction A key factor that forms the backbone for risk management is the measure of those potential … Continue reading

Posted in Contributors, Financial techniques | Tagged , , , , | Leave a comment

The variance-covariance method for VaR calculation

In this article, Jayati WALIA (ESSEC Business School, Grande Ecole – Master in Management, 2019-2022) presents the variance-covariance method for VaR calculation. Introduction VaR is typically defined as the maximum loss which should not be exceeded during a specific time … Continue reading

Posted in Contributors, Financial techniques | Tagged , , , | Leave a comment

Standard deviation

Standard deviation In this article, Jayati WALIA (ESSEC Business School, Grande Ecole Program – Master in Management, 2019-2022) presents an overview of standard deviation and its use in financial markets. Mathematical formulae To identify the center or average of any … Continue reading

Posted in Contributors, Financial techniques | Tagged , , , , | Leave a comment

Systematic risk and specific risk

In this article, Youssef LOURAOUI (Bayes Business School, MSc. Energy, Trade & Finance, 2021-2022) presents the systematic risk and specific risk of financial assets, two fundamental concepts in asset pricing models and investment management theories more generally. This article is … Continue reading

Posted in Contributors, Financial techniques | Tagged , , , , , , , | Leave a comment

Security Market Line (SML)

In this article, Youssef LOURAOUI (Bayes Business School, MSc. Energy, Trade & Finance, 2021-2022) presents the Security Market Line (SML), a key concept in asset pricing derived from the Capital Asset Pricing Model (CAPM). This article is structured as follows: … Continue reading

Posted in Contributors, Financial techniques | Tagged , , , , , , | Leave a comment