Using German panel data, we assess the causal effect of job loss, and thus of an extensive income shock, on risk … perceives the threat of job loss and is of a transitory nature. The change in stated risk attitude matches observable job … attitude. In line with predictions of expected utility reasoning about absolute risk aversion, losing oneś job reduces the …

Operational risk is being considered as an important risk component for financial institutions as evinced by the large … sums of capital that are allocated to mitigate this risk. Therefore, risl measurement is of paramount concern for the … purposes of capital allocation, hedging, and new product development for risk mitigation. We perform a comprehensive evaluation …