Mueller, Hubert; Siberón, José - In: Journal of Financial Regulation and Compliance 12 (2004) 4, pp. 351-358
“Economic capital (EC) is in – Value at Risk (VaR) is out!” This statement by James Lam, well known to be the first Chief Risk Officer (CRO) worldwide, at the April 2004 Enterprise Risk Management (ERM) Symposium in Chicago, caused quite a reaction by the attendees. What is EC? Why are...