English

On decomposing risk in a financial-intermediate market and reserving

Probability 2008-12-10 v1 Risk Management

Abstract

We consider the problem of decomposing monetary risk in the presence of a fully traded market in {\it some} risks. We show that a mark-to-market approach to pricing leads to such a decomposition if the risk measure is time-consistent in the sense of Delbaen.

Keywords

Cite

@article{arxiv.math/0603041,
  title  = {On decomposing risk in a financial-intermediate market and reserving},
  author = {Saul Jacka and Abdel Berkaoui},
  journal= {arXiv preprint arXiv:math/0603041},
  year   = {2008}
}

Comments

17 pages