This text examines the complex issues that concern the stability of the global financial system by presenting a mix of theory and practice. It should be essential reading for all involved in financial risk management

Can we know the risks we face, now or in the future? No, we can¬ but yes, we must act as if we do. Some dangers are unknown; others are known, but not by us because no one person can know everything. Most people cannot be aware of most dangers at most times. Hence, no one can calculate...