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 cannot in the opinion of His Majesty’s Government be classified as slavery in the extreme acceptance of the word without some risk of terminological inexactitude.”
—Winston Churchill (1874–1965)
“From whatever you wish to know and measure you must take your leave, at least for a time. Only when you have left the town can you see how high its towers rise above the houses.”
—Friedrich Nietzsche (1844–1900)