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:
“We saw the risk we took in doing good,
But dared not spare to do the best we could
Though harm should come of it”
—Robert Frost (1874–1963)
“Trying to love your children equally is a losing battle. Your children’s scorecards will never match your own. No matter how meticulously you measure and mete out your love and attention, and material gifts, it will never feel truly equal to your children. . . . Your children will need different things at different times, and true equality won’t really serve their different needs very well, anyway.”
—Marianne E. Neifert (20th century)