In financial mathematics, a risk measure is used to determine the amount of an asset or set of assets (traditionally currency) to be kept in reserve. The purpose of this reserve is to make the risks taken by financial institutions, such as banks and insurance companies, acceptable to the regulator. In recent years attention has turned towards convex and coherent risk measurement.
Read more about Risk Measure: Mathematically, Set-valued, Relation To Acceptance Set, Relation With Deviation Risk Measure, See Also
Famous quotes containing the words risk and/or measure:
“The married are those who have taken the terrible risk of intimacy and, having taken it, know life without intimacy to be impossible.”
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“If the pulse of his people shall beat calmly under this experiment, another and another will be tried till the measure of despotism be filled up.”
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