Hands-On Value-at-Risk and Expected Shortfall: A Practical Primer (Management for Professionals)

by Martin Auer

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Book cover for Hands-On Value-at-Risk and Expected Shortfall

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This book describes a maximally simple market risk model that is still practical and main risk measures like the value-at-risk and the expected shortfall. It outlines the model's (i) underlying math, (ii) daily operation, and (iii) implementation, while stripping away statistical overhead to keep the concepts accessible. The author selects and weighs the various model features, motivating the choices under real-world constraints, and addresses the evermore important handling of regulatory requirements. The book targets not only practitioners new to the field but also experienced market risk operators by suggesting useful data analysis procedures and implementation details. It furthermore addresses market risk consumers such as managers, traders, and compliance officers by making the model behavior intuitively transparent.


A very useful guide to the theoretical and practical aspects of implementing and operating a risk-monitoring system for a mid-size financial institution. It sets a common body of knowledge to facilitate communication between risk managers, computer and investment specialists by bridging their diverse backgrounds.

Giovanni Barone-Adesi - Professor, Universita della Svizzera italiana

This unassuming and insightful book starts from the basics and plainly brings the reader up to speed on both theory and implementation.

Shane Hegarty - Director Trade Floor Risk Management, Scotiabank

Visit the book's website at www.value-at-risk.com.

  • ISBN13 9783319891705
  • Publish Date 6 June 2019 (first published 12 February 2018)
  • Publish Status Active
  • Publish Country CH
  • Imprint Springer International Publishing AG
  • Edition Softcover reprint of the original 1st ed. 2018
  • Format Paperback
  • Pages 169
  • Language English