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.”
—Carolyn Heilbrun (b. 1926)
“To measure life learn thou betimes, and know
Toward solid good what leads the nearest way;
For other things mild Heaven a time ordains,
And disapproves that care, though wise in show,
That with superfluous burden loads the day,
And, when God sends a cheerful hour, refrains.”
—John Milton (1608–1674)