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:
“When a man leaves his mistress, he runs the risk of being betrayed two or three times daily.”
—Stendhal [Marie Henri Beyle] (1783–1842)
“Letters are above all useful as a means of expressing the ideal self; and no other method of communication is quite so good for this purpose.... In letters we can reform without practice, beg without humiliation, snip and shape embarrassing experiences to the measure of our own desires....”
—Elizabeth Hardwick (b. 1916)