This paper evaluates the model risk of models used for forecasting systemic and market risk. Model risk, which is the … periods, the underlying risk forecast models produce similar risk readings; hence, model risk is typically negligible. However … the reliability of risk readings. Finally, particular conclusions on the underlying reasons for the high model risk and …

Risk diversification is the basis of insurance and investment. It is thus crucial to study the effects that could limit … it. One of them is the existence of systemic risk that affects all of the policies at the same time. We introduce here a … probabilistic approach to examine the consequences of its presence on the risk loading of the premium of a portfolio of insurance …

The present research is about quantifying the economic risk exposure of the projects and willingness of investors to … take a chance on an investment of uncertain outcome based on risk attitude. This paper explains typical investment … distribution a way of measuring risk exposure and introduces the use of utility functions to determine a decision maker’s risk …

design. Present risk governance is based primarily on two institutions - insurance markets and public risk governance … - supported by a powerful theory: the expected utility approach to risk. New systemic risks like those of nuclear war, pandemics … involve three major advances. First, to introduce a risk function that generalizes expected utility so as to overcome well …