Learn how the Advanced Internal Rating-Based (AIRB) approach helps financial institutions internally assess credit risk using ...

Forbes contributors publish independent expert analyses and insights. Writes about the future of finance and technology, follow for more. Joint probability teaches us to calculate combined outcomes.

Interest rate derivatives—financial investments whose value depends on interest rates—provide useful information about the risk of short-term rates falling again to the zero lower bound. According to ...

Monte Carlo simulation is a technique used to demonstrate risk and a range of possible outcomes, in which a financial plan is put through thousands of possible return paths for the portfolio to ...

You've completed your take-off, entered the job quotes, applied profit, overhead, and taxes to your estimate, and you believe you've accounted for everything. What could possibly go wrong? Plenty. The ...

Risk isn’t merely about the odds of winning. It’s about the severity of loss when things go wrong. The low-leverage index outperformed the high-leverage index by 103% over the decade, and surpassed ...