Thisbookprovidesthefirstsystematictreatmentofmodelrisk,outliningthetoolsneededtoquantifymodeluncertainty,tostudyitseffects,and,inparticular,todeterminethebestupperandlowerriskboundsforvariousriskaggregationfunctionalsofinterest.Drawingonbothnumericalandanalyticalexamples,thisisathoroughreferenceworkforactuaries,riskmanagers,andregulators.Supervisoryauthoritiescanusethemethodsdiscussedtochallengethemodelsusedbybanksandinsurers,andbanksandinsurerscanusethemtoprioritizetheactivitiesonmodeldevelopment,identifyingwhichonesrequiremoreattentionthanothers.Insum,itisessentialreadingforallthoseworkinginportfoliotheoryandthetheoryoffinancialandengineeringrisk,aswellasforpractitionersintheseareas.Itcanalsobeusedasatextbookforgraduatecoursesonriskboundsandmodeluncertainty.
