Specialised risk management and measurement

Market risk measurement and management for non financial institutions

With the interconnectivity and volatility of global markets, companies must prepare for and consider the implications of market price stresses. More scenarios are required, as well as modelling outcomes that make sense in terms of potential change, plus dealer, client and market behaviour. The solution is to develop more dynamic, stochastic approaches to capturing potential volatility implications on profit and loss, capital and the overall balance sheet condition.

Market risk priorities include building and designing models to support risk measurement, model validation, day-to-day market risk measurement and control, stochastic, dynamic and scenario modelling, portfolio management, governance, policies and loss containment.

Market risk management can independently support overall market risk activities or be part of a strategic process within corporate finance or treasury.

Reply approach to market risk is similar to that adopted for financial institutions, which you can view here.

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