Tail risk: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Removed link)
imported>Doug Williamson
(Classify page.)
Line 11: Line 11:
* [[Standard deviation]]
* [[Standard deviation]]
* [[Tail event]]
* [[Tail event]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]

Revision as of 22:44, 6 June 2020

The risk of adverse consequences from a 'tail event'.

Financial markets tend to have 'fat tails', meaning both the likelihood and the size of potential losses and other adverse consequences are systematically underestimated.


See also