Managing uncertainty

C o m m u n i t y freedom of establishment directives are a rough approxi -

mat ion to the capital needs suggested by early risk-theoretical con-

siderations (Campagne, 1957, 1961; D e W i t and Kaste l i jn , 1980;

D a y k i n , 1984). A n early solut ion was implemented i n F i n l a n d i n 1953

(Pentikainen, 1952) and further research is being carried out i n

Canada , the U S A and the U K to develop more sophisticated risk-

based capi tal requirements, tak ing into account a number of different

risk factors (Butsic, 1992).