**Reading Source:** Textbook - Financial Enterprise Risk Management

**Topics Covered in this Reading:**

- Market and Economic Risk
- Characteristics of Financial Time Series
- Modelling Market and Economic Risks
- Expected Returns
- Benchmarks
- The Black-Scholes Model

- Interest Rate Risk
- Interest Rate Definitions
- Single Factor Interest Rate Models
- Multi-Factor Interest Rate Models
- PCA-based Approaches
- The Black Model

- Foreign Exchange Risk
- Credit Risk
- Qualitative Credit Models
- Quantitative Credit Models
- Credit Portfolio Models
- The Extent of Loss
- Credit Risk and Market Risk

- Liquidity Risk
- Systemic Risk
- Demographic Risk
- Level Risk
- Volatility Risk
- Catastrophic Risk
- Trend Risk
- Other Demographic Risks

- Non-Life Insurance Risk
- Pricing for High Claim Frequency Classes
- Reserving for High Claim Frequency Classes
- Low Claim Frequency Classes

- Operational Risk