Securitisation is the isolation of a pool of assets and the repackaging of those assets for trading in capital markets. Securitisation began in the 1970s with US banks selling off pools of mortgage-backed loans. By 2002, some $450bn of assets had been sec...

Dynamic financial analysis (DFA) is an application of mathematical modelling to businesses. DFA models the key elements that impact an organisation’s operations and simulates thousands of potential situations, determining the firm’s ...

Enterprise risk management (ERM) is a recent technique, practiced increasingly by large corporations in industries throughout the world. Sensible risk management flows from the recognition that a dollar spent on managing risk is a dollar cost to the...

Each year consumer products are involved in millions of injuries and thousands of fatalities. Responsibility for this rests with the manufacturers. Most developed countries have also established government agencies that provide regulatory oversight. In th...

The word actuary derives from the Latin actuarius, who was the business manager of the Senate of Ancient Rome. It was applied to a mathematician of an insurance company in 1775 in the Equitable Life Insurance Society of London. Actuarial science This prov...

ALM is universally defined as a comprehensive analysis of the asset portfolio in light of current liabilities and future cash flows of a going-concern company, incorporating existing asset and liability portfolios as well as future premium flo...

Reliance on models to price, trade, and manage risks carries risk. Models are susceptible to errors. In liquid and more or less efficient securities markets, the market price is, on average, the best indicator of the asset’s value. In the abse...