Crisis and Risk Management

Financial crisis and risk management are examined. Over the last several years, regulators have encouraged financial entities to use portfolio theory to produce dynamic measures of risk. VAR, the product of portfolio theory, is used for short-run day-to-day profit and loss-risk exposures. Now is the...

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Published in:The American economic review 2000-05, Vol.90 (2), p.17-21
Main Author: Scholes, Myron S.
Format: Article
Language:English
Subjects:
Bank capital
Bank liquidity
Banking crises
Bankruptcy
Banks
Borrowing
Collateral
Default
Economic crises
Economic crisis
Equity
Financial institutions
Financial services
International finance
International monetary operations
International monetary policy
Investment risk
Investments
Investors
Liquidity
Liquidity premiums
Management of crises
Profits
Risk
Risk management
Swap spread
The near Crash of 1998
Volatility
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creator Scholes, Myron S.
description Financial crisis and risk management are examined. Over the last several years, regulators have encouraged financial entities to use portfolio theory to produce dynamic measures of risk. VAR, the product of portfolio theory, is used for short-run day-to-day profit and loss-risk exposures. Now is the time to encourage the BIS and other regulatory bodies to support studies on stress-test and concentration methodologies. Planning for crises is more important than VAR analysis. Furthermore, such new methodologies are the correct response to recent crises in the financial industry.
doi_str_mv 10.1257/aer.90.2.17
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identifier ISSN: 0002-8282
ispartof The American economic review, 2000-05, Vol.90 (2), p.17-21
issn 0002-8282
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source EconLit s plnými texty; EBSCOhost Business Source Ultimate; International Bibliography of the Social Sciences (IBSS); ABI/INFORM global; JSTOR Archival Journals and Primary Sources Collection; American Economic Association; ProQuest Social Science Premium Collection
subjects Bank capital
Bank liquidity
Banking crises
Bankruptcy
Banks
Borrowing
Collateral
Default
Economic crises
Economic crisis
Equity
Financial institutions
Financial services
International finance
International monetary operations
International monetary policy
Investment risk
Investments
Investors
Liquidity
Liquidity premiums
Management of crises
Profits
Risk
Risk management
Swap spread
The near Crash of 1998
Volatility
title Crisis and Risk Management
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