The paper examines potential underreporting of risk in trading books. Namely, the co-movement of the VaR Diversification and the equity ratio is studied. Banks report - after controlling for counterfactual observable correlation - a higher diversification and thereby a lower VaR if equity is...

A strategically minded CFO will realize that strategic corporate risk management is about finding the right balance between risk prevention and proactive value generation. Efficient risk and performance management requires adequate assessment of risk and risk exposures on the one hand and...