Risk Management

Introduction
The traditional role of the risk manager as corporate steward is evolving as organizations face an increasingly complex and uncertain future. The mandate to clearly identify, measure, manage, and control risk has been expanded and integrated into best practice management of a bank. Today's risk manager is a key member of the senior executive team who helps define business opportunities from a risk-return perspective, presents unique ways of looking at them, has direct input into the configuration of products and services, and ensures the transparency of all the risks. Innovation necessitates new yardsticks for measuring and monitoring the resulting activities. The savvy corporate leader uses risk management as both a sword and a shield.
At the end of the last millennium, financial institutions and investors experienced increased volatility in the major financial and commodity markets, with many financial crises. At the start of the new millennium, we are in the midst of a technological revolution resulting in changes in the operation of markets, increased access to information, changes in the types of services available to investors, as well as major changes in the production and distribution of financial services.
If there is concern about an institution's ability to manage risk, then its share price will be penalized.
Risk is a cost of doing business for a financial institution and consequently best practice risk management is a benefit to our shareholders. To manage the risks facing an institution we must have a clearly defined set of risk policies and the ability to measure risk. But what do we measure? And how do we measure such risks? We must also have a best practice infrastructure. The starting point is that we need a framework.
This book provides such a framework. The content of the book is consistent with our own risk management strategy and experience. Our risk management strategy is designed to ensure that our senior management operates together in partnership to control risk while ensuring the independence of the risk management function. Improvements in analytic models and systems technology have greatly facilitated our ability to measure and manage risk. However, the new millennium brings new challenges. There are risks that we can identify and measure and there is the uncertainty of the unknown. The challenge facing risk managers is to minimize the consequences of the unknown. This book should help all risk and business managers address the issues arising from risk and uncertainty.

And you will get further information, please read this book:

Risk Management
By:
Michel Crouhy
Dan Galai
Robert Mark

Mc Graw-Hill Book

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Database Jargon

What is a Database?
A database is simply a collection of data, stored in an organized way.
For example, it may be:
_ an address list
_ employee details
_ details about items in stock.

A simple database could be used to store the names and addresses of those you send Christmas cards to, or details of your CD collection. A more complex database could be used to store the data that you need to run your company, e.g. supplier, customer, stock and order details.

Database Jargon
If you have never used a database before, you might not have encountered some of the database terminology that we will use in this book. Here are brief definitions of the terms you will come across.

Table: All the data on one topic is stored in a table. A table could contain details of the employees that work for your company. In a simple database, you might have only one table. More complex ones may consist of several tables.

Record: The data for a single item in a table is held in that item’s record. Using the employee table example, each employee would have their own record within the employee table.

Field: A field is a piece of information within a record e.g. in your employee table, things like surname, job title, date of birth, or salary grade.

Field name: The label, or name, given to a field.

Primary key: A special field that will contain a unique piece of information in each record e.g. StaffID.

Relationship: A relationship is used to link two tables through a common field.

Join: The process of linking two tables is often referred to as joining them.

Data definition: The process of defining, or describing, the data to be stored. This will involve specifying the data type (text, number, date), the field size, and how it is related to other tables.

Data manipulation: This term describes any work done on existing data within your tables. Sorting and extracting data and producing reports from it would all be examples of data manipulation.

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Analisis Data Statistik : WHAT IS ECONOMETRICS?

Literally interpreted, econometrics means “economic measurement.” Although measurement is an important part of econometrics, the scope of econometrics is much broader, as can be seen from the following quotations: Econometrics, the result of a certain outlook on the role of economics, consists of the application of mathematical statistics to economic data to lend empirical support to the models constructed by mathematical economics and to obtain numerical results.

Econometrics may be defined as the quantitative analysis of actual economic phenomena based on the concurrent development of theory and observation, related by appropriate methods of inference.

Econometrics may be defined as the social science in which the tools of economic theory, mathematics, and statistical inference are applied to the analysis of economic phenomena.
Econometrics is concerned with the empirical determination of economic laws.

The art of the econometrician consists in finding the set of assumptions that are both sufficiently specific and sufficiently realistic to allow him to take the best possible advantage of the data available to him.
Econometricians are a positive help in trying to dispel the poor public image of economics (quantitative or otherwise) as a subject in which empty boxes are opened by assuming the existence of can-openers to reveal contents which any ten economists will interpret in 11 ways.
The method of econometric research aims, essentially, at a conjunction of economic theory and actual measurements, using the theory and technique of statistical inference as a bridge pier.

METHODOLOGY OF ECONOMETRICS

How do econometricians proceed in their analysis of an economic problem?
That is, what is their methodology? Although there are several schools of thought on econometric methodology, we present here the traditional or classical methodology, which still dominates mpirical research in economics and other social and behavioral sciences.
Broadly speaking, traditional econometric methodology proceeds along the following lines:

1. Statement of theory or hypothesis.
2. Specification of the mathematical model of the theory
3. Specification of the statistical, or econometric, model
4. Obtaining the data
5. Estimation of the parameters of the econometric model
6. Hypothesis testing
7. Forecasting or prediction
8. Using the model for control or policy purposes.


For further information, please read a book: Basic Econometric 4th Ed. Gujarati.(2004)

Enjoy....

SQL Commands

Below, given some Common SQL Command. Items bracketed [] are optional.

For a complete list of MySQL supported commands, visit the MySQL
website at http://www.mysql.com.

ALTER
ALTER TABLE table_name ADD [COLUMN] ...;

CREATE
CREATE DATABASE database_name;
CREATE TABLE table_name;

DELETE
DELETE FROM table_name [WHERE ...];

DROP
DROP DATABASE database_name;
DROP TABLE table_name;

GRANT
GRANT privilege ON table_name ►►
TO user [IDENTIFIED BY 'password'] [WITH GRANT OPTION];

INSERT
INSERT [INTO] table_name VALUES (...);

SELECT
SELECT ... [FROM table_name(s)] ►►
[WHERE ...] [GROUP BY ... ] [ORDER BY ...];

SET
SET PASSWORD FOR user@localhost = ►►
PASSWORD("password");
SET PASSWORD FOR user@"%.visibooks.com" = ►►
PASSWORD("password");
SET PASSWORD FOR user@"%" = PASSWORD("password");

SHOW
SHOW DATABASES;
SHOW TABLES;
UPDATE

UPDATE table_name SET column_name=value [WHERE ...];

USE
USE database_name;

Let’s study SQL ! Enjoy It !