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:
“Kemmerick: He’s dead. He’s dead.
Katczinsky: Why did you risk your life bringing him in?
Kemmerick: But it’s Behm. My friend.
Katczinsky: It’s a corpse, no matter who it is.”
—Maxwell Anderson (1888–1959)
“The measure of your quality as a public person, as a citizen, is the gap between what you do and what you say.”
—Ramsey Clark (b. 1927)