ABSTRACT
FINANCIAL RISKS can be measured as to their strength or the financial consequencesof a specific economic activity. In solvency considerations, we would put a capital requirement on the risks: the higher the risk is, the higher the capital requirement should be. The interpretation of a risk measure’s outcome depends very much on the context where it is used. As shown in Tsanakas (2007), there have been three main areas of application of risk measures.
