After reading this article you will learn about the stress test which is a risk management tool adopted by insurance companies. Stress Test: The business of insurance is based on dealing with uncertainty. Therefore, an insurer needs to consider a wide range of possible changes that may affect its current and expected future financial position. Stress test is a necessary [...]
Here is a compilation of essays on ‘Investment Risk Management’ for class 11 and 12. Find paragraphs, long and short essays on ‘Investment Risk Management’ especially written for school and college students. Essay on Investment Risk Management Essay Contents: Essay on Introduction to Investment Risk Management Essay on the Investment Management by Insurers Essay on the Investment Risk Management Framework [...]
The following points highlight the three main types of risk measurement techniques in relation to investment. The techniques are: 1. Capital Asset Pricing Model (CAPM) 2. Value at Risk (VAR) 3. Monte Carlo Simulation Method for Valuation. Technique # 1. Capital Asset Pricing Model (CAPM): CAPM is a model based on the proposition that on any stock required rate of [...]