Global SIFI and Idiosyncratic risk: Difference between pages
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#In the Capital Asset Pricing Model, the same as Diversifiable risk. Also known as Specific risk or Unsystematic risk. | |||
#The concept is also important in bank regulation and stress testing. Regulated banks must be resilient both to shocks which are market-wide, and to shocks which are idiosyncratic or specific to the regulated entity. | |||
== See also == | |||
* [[Diversifiable risk]] | |||
* [[Stress test]] | |||
[[Category:Financial_risk_management]] | |||
Revision as of 12:25, 1 September 2015
- In the Capital Asset Pricing Model, the same as Diversifiable risk. Also known as Specific risk or Unsystematic risk.
- The concept is also important in bank regulation and stress testing. Regulated banks must be resilient both to shocks which are market-wide, and to shocks which are idiosyncratic or specific to the regulated entity.