In one classic experiment conducted by Daniel Kahneman and Amos Tversky, pioneers in the field of prospect theory, subjects were given a hypothetical choice between a sure $3,000 gain versus an 80% chance of a $4,000 gain and a 20% chance of not getting anything. 193 more words
Tags » Risk Appetite
by Cory Gunderson, Managing Director
Global Leader, Financial Services Industry
One of the key questions financial services firms ask every morning is, “Am I riskier today than I was yesterday?” Institutions need to know whether their risk profile has changed, and why. 465 more words
By Matt Perconte, Director
Risk and Compliance Practice
Man plans, God laughs, according to the Yiddish proverb. Bank regulators, not so much – at least not when it comes to risk management, which continues to be an ever-moving target for financial institutions. 486 more words
Which direction are you planning on taking?
- Are you expecting your risk to grow faster than your capacity to bare risk?
- Are you expecting your risk capacity to grow faster than your risk? 376 more words