Economic Capital
From Open Risk Manual
Revision as of 14:05, 16 April 2021 by Wiki admin (talk | contribs)
Definition
Economic Capital denotes a set of concepts, tools and processes that aim link the capital structure of the firm to its risk management profile and objectives
Applications
- Asset liability management (ALM)
- Financial planning (merger and acquisition analysis, business growth strategies and capital management)
- Regulatory compliance. Use of internal risk management models in the satisfaction of SREP / ICAAP
- Investment strategy
- Risk Pricing
- Reserving
- Risk Hedging
- Risk Attribution.
