Economic capital / Other risks [3]

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Bullet points include: Various definitions, usually referring to combination of: Amount of surplus assets or cash flows (capital) needed to cover unexpected events To a specified measure of risk tolerance (could be a quantile, so VaR-like, or a value of loss or some other indicator), given some risk measure and focusing on risk over a specified time horizon E.g. “additional value of funds needed to cover potential outgoings, falls in asset values and rises in liabilities at some given risk tolerance over a specified time horizon” Brings together many of the principles discussed elsewhere on course

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