Enhancing risk measurement capabilities

Abstract

Examines the rapid advances in risk measurement capabilities of financial institutions with the Basle Accord standards firmly in mind. Gives firm guidelines from the Basle Committee and recommendations and examples. States many financial institutions have developed methods for relating risk to capital, similar to the framework outlined in the recommendations. Looks at applications of economic capital and explores how these can be used to improve management decision making. Sums up that the need for financial institutions to design and implement what is required is pressing indeed.

Citation

Garside, T. and Nakada, P. (2000), "Enhancing risk measurement capabilities", Balance Sheet, Vol. 8 No. 3, pp. 12-17. https://doi.org/10.1108/09657960010338616