If you Can’t Measure it, You Can’t Manage it
Taming Something That’s Lurking Around
Abstract
A management process requires three components to work effectively: definition and quantification criteria for the object of management, judgment on limits or targets, and controls. Currently there is no definition of a measure for exposure from tail risk. Therefore, the key challenge today is to define a measure that can be used to develop metrics related to the sustainability of an institution as a going concern. An example of events at Citicorp in 1980 demonstrates that without a definition, quantification, and measurement of risk it is nearly impossible to institute a process to effectively manage exposure. The example also shows that ...
Get Managing Extreme Financial Risk now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
