What are some recommended introductory books for learning financial risk management

Entry-level

1. Stanford Minimalist Economics

Author: [U.S.] Timothy Taylor

Author Timothy Taylor is the most popular professor of economics at Stanford University, editor-in-chief of the Journal of Economic Perspectives, an authoritative publication of the American Economic Association, and winner of the Distinguished Teaching Award at Stanford University. " winner at Stanford University, and author of the American general textbook Principles of Economics.

This book starts with 36 key terms of economics, each about 3,000 words, and introduces conceptual principles with life examples, with clear concepts that are easy to understand without economic foundation, helping us to recognize the complex workings of the economy, to make rational decisions, to work smarter, and to improve efficiency and quality of life. It is also the most popular textbook for introductory economics courses at Stanford University. Students who are about to enter college can check it out to be able to get a general understanding of economics.

2. Principles of Economics

Author: [U.S.] N. Gregory Mancun

While it has been recommended many times, it is still important to say that Mancunian's Principles of Economics is indeed worth reading!

Many people really read and understand Western economics are from Mancunian "Principles of Economics" began, because interesting, easy to understand, "ten principles of economics" is impressive, when the study of Samuelson's economics feel like a rigorous economics of the old scholar, read Mancunian is not the same, like a storyteller friend, even if you do not engage in the financial industry, I believe that you will not be able to read the book, but you can read the book. Even if you do not engage in the financial industry, I believe you will also like her. This is definitely a book that people can afford to take, can not put down the pillow book.

3. Thinking in Economics (12th Edition)

Author: (U.S.) Paul Hein/Peter Boettke/David Prechterko

This book is for students who not only think of economics as a talking point, but also want to think about everyday life in economic terms.

Unlike mainstream economics textbooks, this book eschews complicated formulas, functions, and operations, and combines the complexity and seeming irrelevance of everyday social phenomena with a coherent framework for thinking about them in a way that demonstrates the "imagination of economics" through insightful and entertaining illustrations. The Economist's Imagination". As Douglas North puts it, the power of economics is in the hands of the people. North said, the power of economics lies in the fact that it is a way of thinking, and the purpose of this book is precisely to guide readers to learn the way of economic reasoning so that they can think like economists.

4. Strategic Thinking

Author: Avinash K. Dixit/Barry J. Nelbrough

Studying economics we are bound to come across game theory. And usually game theory is linked to math. For students who are new to finance, the math may be a challenge, but this book analyzes the practical use of game theory through detailed examples. This book by Yale professor Nelbrough and Princeton professor Dixit uses many live examples to show readers without a foundation in economics the rationale for strategic thinking in game theory.

Advanced Level

I believe that after understanding some economics and finance, you may want to learn something deeper. Here are some recommended finance textbooks that are worth reading:

1. Monetary Finance

Author: Frederick S. Mishkin

But all the professionals engaged in the financial industry will not be unfamiliar with this book, which is the first professional foundation textbook for financial professionals. In the past, China's university program called "monetary banking", and later with the development of the financial industry, money gradually become part of the financial products rather than all, the bank is also a branch of the financial institutions, so and international standards into "finance" or "monetary finance". "Monetary finance", in fact, is the same type of book. Frederick S. Mishkin is the absolute authority in this field. Gordon financial FRM editorial year directly read the English version, and the Chinese version is still different, it is recommended to have the ability to prepare for the FRM / CFA students also look directly at the English version.

2. "Options Futures and Other Derivatives"

Author: [Canada] John Hull (John C. Hull)

For the partners of the examination certificate this is probably a permanent pain in the heart of the ......FRM or CFA or, financial derivatives are required to be tested. The first is the "Options, Futures, and Other Derivatives". Options, Futures and Other Derivatives provides a systematic exposition of the basic theories of options and futures in the financial derivatives market, providing a large number of industry examples. It focuses on the operation mechanism of the futures market, hedging strategies using futures, forward and futures price determination, the operation process of the options market, the operation process of the options market, the nature of stock options, options trading strategies, and credit derivatives, the Black-Scholes model, the Greek value and its use, climate and energy and insurance derivatives, and so on. By the way, children who take the FRM can also look at the author's other book "Risk Management and Financial Institutions", which can help understand the content of the exam.

3. Financial Modeling

Author: Benninga, Simon

Learning finance can't play with excel, how to enter the investment bank? This book teaches you a wide range of financial models, from CAPM, corporate finance to portfolio modeling, VaR, and your thinking will be much clearer with this book. In short, this book covers most of the areas of introductory finance and gives practical models and data analysis. Especially students who wish to learn econometrics or want to become analysts, this book is definitely worth a look. However, the disadvantage is that there is no Chinese version at the moment, which makes it difficult to read.

Nothing to look at

It is still boring to read a textbook, so here are some easy reads:

1. "Restore the Real Federal Reserve"

Author: Wang Jian

If you've read Song Hongbing's conspiracy theory drama "Currency Wars", and if you haven't, but you're curious about the Federal Reserve, it's a good book. Very clear and organized and well reasoned. The style is like a handout stripped of technical details, one knowledge point at a time to popularize the Fed and general knowledge of finance, with a summary of knowledge points at the end of each chapter. The author is a senior economist and policy adviser at the Federal Reserve Bank of Dallas, the Federal Reserve, and received a doctorate in economics from the University of Wisconsin, so it is inevitable that there is a slight bias, but it is also closer to the real financial world than science fiction.

2. The Big Short

Author: Michael Lewis

This book has been adapted into a movie, so you can see the movie first, and the acceptance may be higher. The book interviews fund managers and traders who shorted real estate during the subprime crisis, and writes about how they went from sniffing out the crisis to betting against the subprime market, buying a lot of credit default swaps, and making a lot of money in the end.