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:
“It’s a funny thing, the less people have to live for, the less nerve they have to risk losing—nothing.”
—Zora Neale Hurston (1891–1960)
“The Obedience of Children to their Parents is the Basis of all Government, and set forth as the measure of that Obedience which we owe to those whom Providence hath placed over us.”
—Joseph Addison (1672–1719)