tailRisk is a C++ library for the calculation of various tail risk measures. Tail Risk is a core concept in Quantitative Risk Management , relevant in particular in Market Risk and Credit Risk Management. Tail Risk is both an informal term denoting unusually occurring tail events and a more precise term denoting concrete classes of risk measures
In this archive post we discuss a number of financial terms whose precise meaning is frequently intentionally or unintentionally obscured. As a result those terms may, like a Rorschach Blot, mean different things to different people. Unlike this famous psychological test, ambiguity in weighty financial matters can have adverse consequences.
According to wikipedia Conflation is the merging of two or more sets of information, texts, ideas, opinions, etc., into one, often in error. This may lead to misunderstandings, as the fusion of distinct subjects might obscure analysis of relationships which are emphasized by contrasts. Why does conflation happen in the first place? There are several possible factors which in some contexts may be co-existing and overlapping:
Risk Management means different things to different people. In this post we explore some truths about professional risk management that highlight both the challenges it is facing as a discipline and the significant role it can play towards a sustainable future
Some form of Informal Risk Management has been practiced by individuals since time immemorial as it is essential for survival, both at the individual and group level. This is the domain of intuitive decision-making, assessing situations on the spot and taking immediate action to avoid obvious risks. It is also the domain of folk wisdom, traditional knowledge and insights passed down orally through generations, expressed in proverbs, stories, and cultural practices (think e.g., Don’t put all your eggs in one basket or, There is never only one cockroach and the long list of Risk Management One-Liners ). This know-how reflects the collective experiences and beliefs of communities, providing guidance on how to successfully handle adverse scenarios.