The concept of risk assessments is often associated with large banks and financial institutions – but it shouldn’t be. Oftentimes, the ugly truth about risk assessments is that they are prepared specifically to meet a regulatory requirement and not much more. 1,595 more words
Tags » Risk Appetite
The concept of risk-appetite has been around for years, yet so many risk practicioners still find themselves confused and unsure how to quantify, formalise and document it. 581 more words
The question is not whether to take risk, but how much and no more!
And that amount is a function of your appetite.
The world has become so interesting because many of our ancestors decided to do things that were ‘risky’, or even outright outrageously ‘improbable’ and ‘uncertain’! 9 more words
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
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