Ruin probability quantifies the risk that an insurer or financial institution’s liabilities may exceed its assets, ultimately leading to insolvency. Recent advancements in risk management have ...

Operational risk is one of the influential risks identified by banking practitioners, and as the international banking supervisor, the Basel Committee on Banking Supervision has paid special attention ...

Insurance can effectively mitigate significant operational risks. However, not all losses are insurable, and payments of covered losses are not generally reimbursed in full for reasons including the ...

What Are Risk-Neutral Probabilities? Risk-neutral probabilities are probabilities of potential future outcomes adjusted for risk, which are then used to compute expected asset values. In other words, ...

Risk isn’t merely about the odds of winning. It’s about the severity of loss when things go wrong. The low-leverage index outperformed the high-leverage index by 103% over the decade, and surpassed ...

Monte Carlo simulation is a technique used to demonstrate risk and a range of possible outcomes, in which a financial plan is put through thousands of possible return paths for the portfolio to ...