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:
“A monarch must sometimes rule even himself: he who wants everything must risk very little.”
—Pierre Corneille (1606–1684)
“As soon as man began considering himself the source of the highest meaning in the world and the measure of everything, the world began to lose its human dimension, and man began to lose control of it.”
—Václav Havel (b. 1936)