To determine the appropriate level of risk capital financial institutions are required to empirically estimate and predict specific risk measures. Although regulation commonly prescribes the forecasting horizon and the frequency with which risk assessments have to be reported, the scheme with...

"Quantitative risk assessments cannot eliminate risk, nor can they resolve trade-offs. They can, however, guide principled risk management and reduction - if the quality of assessment is high and decision makers understand how to use it. This book builds a unifying scientific framework for...