Risk Analyzing |

Typical Properties of the Risk Function |

The Enterprise Risk Manager needs only a few input data to find out the risk function The procedure to obtain a density function to quantify a risk function or a part of a risk function, includes the following five steps. • In step one, information is gathered on some of the different typical properties of the risk function. We need • the best case T{R(x) • the real caseT{R(x) • the worst caseT{R(x) • In step two, the part of the range of the risk function is chosen that is to be quantified by means of a density function f(i;p • In step three, some typical properties are determined of the selected part of the range of the risk function. • In step four the Enterprise Risk Manager finds out every generally viable density function f(i;p • In step five, one generally viable density function f(i;p |