Difference between revisions of "Management Action"
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== Usage == | == Usage == | ||
| − | It is a term used in the context of [[Scenario Analysis]] to denote the flexibility available to an organization's management to affect how a future scenario unfolds by exercising any discretions it has at its disposal. | + | It is a term used in the context of [[Scenario Analysis]] to denote the flexibility available to an organization's management to affect how a future scenario unfolds by exercising any discretions it has at its disposal. Management actions differ significantly by business line and the core risk being managed. They also range in severity and impact |
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| − | Management actions differ significantly by business line and the core risk being managed. They also range in severity and impact | ||
== Examples == | == Examples == | ||
* In [[Market Risk]] context management action may include closing positions, hedging or other de-risking measures | * In [[Market Risk]] context management action may include closing positions, hedging or other de-risking measures | ||
* In [[Credit Risk]] context management action may include changing origination criteria, credit insurance, disposals etc. | * In [[Credit Risk]] context management action may include changing origination criteria, credit insurance, disposals etc. | ||
| + | * In [[Climate-Related Risk]] it may include a variety of measures towards reducing [[Greenhouse Gas Emissions]] | ||
== Issues and Challenges == | == Issues and Challenges == | ||
Latest revision as of 11:58, 27 October 2021
Definition
Management Action is an event relating to the management of a company or other concern.
Usage
It is a term used in the context of Scenario Analysis to denote the flexibility available to an organization's management to affect how a future scenario unfolds by exercising any discretions it has at its disposal. Management actions differ significantly by business line and the core risk being managed. They also range in severity and impact
Examples
- In Market Risk context management action may include closing positions, hedging or other de-risking measures
- In Credit Risk context management action may include changing origination criteria, credit insurance, disposals etc.
- In Climate-Related Risk it may include a variety of measures towards reducing Greenhouse Gas Emissions
Issues and Challenges
- Incorporation of management action into scenario analysis, while arguably realistic, introduces further uncertainty and subjectivity e.g. around the ability and effectiveness
Disclaimer
This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with or correctly interprets the concepts covered by the FIBO ontology.
