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Economic capital / Other risks [5]

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Bullet points include: Include: “the amount of surplus sufficient to meet potential negative cash flows and reductions in value of assets or increases in value of liabilities at a given level of risk tolerance, over a specified time horizon”; “the excess of the market value of the assets over the fair value of the liabilities required to ensure that obligations can be satisfied at a given level of risk tolerance, over a specified time horizon”; or “The amount of surplus sufficient to maintain solvency at a given risk tolerance, over a specified time horizon” Specified risk tolerance may be VaR-like (i.e. specified percentile), often used by rating agencies, or TVaR-like (e.g. conditional tail expectation, CTE(n), representing the average of the (100-n) worst scenarios), e.g. as used in Canadian Risk Based Capital calculations

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