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Über dieses Buch

This book is about the formulations, theoretical investigations, and practical applications of new stochastic models for fundamental concepts and operations of the discipline of risk management. It also examines how these models can be useful in the descriptions, measurements, evaluations, and treatments of risks threatening various modern organizations. Moreover, the book makes clear that such stochastic models constitute very strong analytical tools which substantially facilitate strategic thinking and strategic decision making in many significant areas of risk management. In particular the incorporation of fundamental probabilistic concepts such as the sum, minimum, and maximum of a random number of continuous, positive, independent, and identically distributed random variables in the mathematical structure of stochastic models significantly supports the suitability of these models in the developments, investigations, selections, and implementations of proactive and reactive risk management operations. The book makes extensive use of integral and differential equations of characteristic functions, mainly corresponding to important classes of mixtures of probability distributions, as powerful analytical tools for investigating the behavior of new stochastic models suitable for the descriptions and implementations of fundamental risk control and risk financing operations. These risk treatment operations very often arise in a wide variety of scientific disciplines of extreme practical importance.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Fundamental Concepts of Risk Management

Abstract
Risk management may be defined as the systematic process of managing the risks threatening an organization in order to accomplish its goals in a way consistent with common interest, human protection, environmental factors and the law. It consists of the planning, organizing, directing, the safety operations or equivalently the risk management operations with the aim of developing an efficient plan that decreases the negative results of risks threatening that organization. The first chapter consists of three parts. The first part concentrates on the definition, historical consideration, components, consequences, and cost of risk. Moreover, the second part concentrates on the operations, goals, structural disciplines, essence, ascendancy, systemic approach, cindynic consideration, philosophy, and the fundamental factors of the evolution of risk management. The third part presents the theoretical and practical possibilities of stochastic modeling and stochastic models for shaping risk management as a particular discipline of general management.
Constantinos Artikis, Panagiotis Artikis

Chapter 2. Stochastic Models of Risk Management Concepts

Abstract
The formulation and investigation of stochastic models for the fundamental quantitative concepts of risk management constitute the purpose of this chapter. The concepts of the main quantitative components of risk and the concepts of the main quantitative components of risk control and risk financing operations constitute the fundamental quantitative concepts of risk management. This chapter consists of two parts. The first part concentrates on the formulation and investigation of stochastic models for risk severity, risk duration, risk frequency, and total risk severity which are the main quantitative components of risk. The second part concentrates on the formulation and investigation of stochastic models for the time required for treating a risk occurrence, the time of the first occurrence of a major risk, the minimum time of a random number of risk occurrences, the number of ongoing risk occurrences, the multiplicative risk severity, and the riskiness which are the main quantitative components of risk control and risk financing operations.
Constantinos Artikis, Panagiotis Artikis

Chapter 3. Stochastic Models of Risk Management Operations

Abstract
This chapter is devoted to the implementation of two purposes. The formulation and investigation of stochastic models for the fundamental risk treatment operations are the two purposes. Risk control operations and risk financing operations constitute the two categories of fundamental risk treatment operations. This chapter consists of two parts. The first part concentrates on stochastic modeling of risk reduction operations, risk duration reduction operations, and risk frequency reduction operations which are the main risk control operations. The second part concentrates on stochastic modeling of risk financing operations. The stochastic modeling of the cost for treatment of ongoing risk occurrences, and the reserve of risk financing constitute the main theoretical and practical contribution of the second part of this chapter. In theory and practice, risk treatment is implemented by combining stochastic models of risk control operations with stochastic models of risk financing operations.
Constantinos Artikis, Panagiotis Artikis

Chapter 4. Stochastic Discounting Modeling for Concepts and Operations of Risk Management

Abstract
This chapter concentrates on the formulation, investigation, and applications in real world situations of stochastic discounting models describing fundamental concepts and operations of risk management. The incorporation of important concepts of probability theory in stochastic discounting models makes such stochastic models powerful analytical tools for strategic thinking and strategic decision making. More precisely, the presence of a sum, minimum, and maximum of a random number of continuous, positive, independent, and identically distributed random variables in the mathematical structure of a stochastic model substantially supports the applicability of such a stochastic model in describing, analyzing, selecting, and implementing fundamental risk management operations. In addition, the extremely strong results of the theory of characteristic functions facilitate the use of stochastic discounting models in risk management operations.
Constantinos Artikis, Panagiotis Artikis

Backmatter

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