The aim of this book is to study three essential components ofmodern finance - Risk Management, Asset Management and Assetand Liability Management, as well as the links that bind themtogether. It is divided into five parts:

Part I sets out the financial and regulatory contexts thatexplain the rapid development of these three areas during the lastfew years and shows the ways in which the Risk Management functionhas developed recently in financial institutions.
Part II is dedicated to the underlying theories of AssetManagement and deals in depth with evaluation of financial assetsand with theories relating to equities, bonds and options.
Part III deals with a central theory of Risk Management, thegeneral theory of Value at Risk or VaR, its estimation techniquesand the setting up of the methodology.
Part IV is the point at which Asset Management and RiskManagement meet. It deals with Portfolio Risk Management (theapplication of risk management methods to private assetmanagement), with an adaptation of Sharpe's simple indexmethod and the EGP method to suit VaR and application of the APTmethod to investment funds in terms of behavioural analysis.
Part V is the point at which Risk Management and Asset andLiability Management (ALM) meet, and touches on techniques formeasuring structural risks within the on and off balancesheet.
The book is aimed both at financial professionals and atstudents whose studies contain a financial aspect.

"Esch, Kieffer and Lopez have provided us with a comprehensiveand well written treatise on risk. This is a must read, must keepvolume for all those who need or aspire to a professionalunderstanding of risk and its management."
--Harry M Markowitz, San Diego, USA