Description: Presented at May 2005 Spring Meeting. This session examines financial, economic and traditional actuarial methodological approaches used for solving investment-risk problems.

Description: This article addresses the difficulties of risk modeling in a poor economic environment. The problems include imperfect vendors of data, facing events that have never occurred before, unpredictable consumer behavior, conflicting data sources, and AAA credit doesn't always mean AAA.

Description: This session reviews the past half century's advances in finance such as immunization and hedging theory, modern portfolio theory, capital asset pricing model, option-pricing theory, term structure of interest rate models, and so on. Their application to asset and liability management in insurance and pensions is highlighted and discussed.