Financial risk

--- Book page 47:  Understanding risk
A basic measure of market risk is the sensitivity. Sensitivities capture the amount of P/L
generated by a movement in a risk factor. For instance, the duration of a bond mentioned
earlier is a risk factor: it captures the change in a bond’s price for a small movement in
interest rates.
More generally, we want to know how much the P/L will move if there is a small move
in any risk factor. A sensitivity gives us the gradient of the function that relates the P/L V
to some market factor S at a point, so technically it is a partial derivative


--- Book page 31: Credit risk
Copula methods in finance