Measuring and managing market, credit and Op risk [5]

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Bullet points include: In mathematical finance, an asset or liability is also called a (contingent) claim It involves some claim or right to something that has financial value which in general may depend on contingencies or uncertain outcomes Note: Implicitly involves focus on claims that have clearly articulated financial value (so reputational risk can be included but ultimately only indirectly, to the extent that we can practically quantify financially the possible outcomes) C.f. what is measured is often what ends up being managed Implicitly agnostic to the underlying nature (and ethical characteristics) of the claim as only ultimately interested in its economic value

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