Concepts beautifully visualized brick by brick.
  • HOME
  • RISK
    • RISK APPETITE
    • MARKET RISK
    • FRTB REGULATION
  • FINANCE
    • CAPITAL MARKETS
  • TECHNOLOGY
    • FINTECH
    • SERVICE DELIVERY
  • TWEETS
  • MUSINGS
  • ABOUT ME

Welcome!

Understanding something and how a visual helps recall it?

3/11/2017

1 Comment

 
  1. The best way to understand something is by doing it or thoroughly "understanding" it.
  2. Associating a concept with an example or an analogy is the best way to understand. I like the ADEPT method of understanding a concept. It is difficult to come up with an analogy for everything but it does work for most of the cases.
  3. A picture helps store and a recall the information quickly when needed. The words are always associated with an image in our memory. Images also have a longer recall value.
  4. I often condense a full book's worth of information in a single visual. My visuals help understand the concept at a level 1. You do need level 2 and 3 and so on to understand the concept in more details as needed. But often books dive into details quickly which takes a lot of time to consume and does not have a high recall value as there is no association of the information with a picture.
  5. As an example, I try to explain a very high level working of capital markets. The picture touches on many different things like stocks, bonds, demand, equity, debt, etc...For a non-financial person it would be very helpful to first see this visual and then try to understand the concepts of the capital markets. The visual gets etched in memory and has a much higher recall value when needed.
1 Comment

Market Risk Portfolio Risk Mapping

2/13/2017

0 Comments

 
Risk identification begins with identifying risk factors in the portfolio as a first step. Positions are mapped to a small set of risk factors which is called as risk factor mapping. It depends on the number and type of instruments within the portfolio.
Risk Factors help pinpoint specific risk areas in the portfolio. Risk factors are uniquely driven by changes in specific macroeconomic factors like central bank policy actions which will impact interest rate risk factors.
This is also called as modeling risk by risk factors. Large number of deals are mapped to a smaller set of risk factors reducing the computing time for risk simulations. As an example in the illustration, Interest Rate, Currency and Equites risk factors are mapped for all the rates positions. If a portfolio contains 1000 Rates deals all of them can be mapped to the above 3 risk factors.
Comparable assets can also be used as proxy assets for modeling in cases where enough historical data is not available for positions or some OTC instrument that has no previous history.
See more details on  MARKET RISK.
Picture
0 Comments

The start of something satisfying...

11/21/2016

0 Comments

 
Picture
This site has been on my mind for past couple of years. Finally, finally I was able to make it live. I always think that the most important thing is to just start, just do something. Unfortunately waiting for perfection just delayed the whole process and was even beginning to jeopardize my idea.

This is an outlet for me to share my understanding of various concepts, provide a birds-eye view of the concept which can be used as a stepping stone into forest full of weeds, to understand the finer bits. There is a ton of material available on the internet but what is really missing is proper synthesizing of this information and the emphasis of this site will be to convey larger concepts with as few words as possible.

It has taken me long to perfect my processes of understanding a concept, how to effectively research, how to capture and hope I can put out some beautiful visuals at a faster pace in finance, risk, management, strategy...there are so many things to explore, am excited to learn and share!

0 Comments

    Archives

    March 2017
    February 2017
    November 2016

    Categories

    All
    Market Risk
    Other
    Risk
    Risk Factors
    Visual Thinking

    Tweets by visualbricks

    RSS Feed

© COPYRIGHT 2018. ALL RIGHTS RESERVED.
  • HOME
  • RISK
    • RISK APPETITE
    • MARKET RISK
    • FRTB REGULATION
  • FINANCE
    • CAPITAL MARKETS
  • TECHNOLOGY
    • FINTECH
    • SERVICE DELIVERY
  • TWEETS
  • MUSINGS
  • ABOUT ME