Measures and considerations of the regulated unexpected risks are widely addressed in the literature in the form of Solvency Capital Requirements for financial institutions. These measures are predefined by the regulator and there is limited freedom of deviation.
A point of consideration here are non-financial institutions, which could be exposed to any type of non-life risk and are not regulated by an external
party. For simplicity we concentrate on the hazard risks only. Such non-life hazard risks (further simply risk) have to be addressed by the companies
themselves.
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- Implied Cost of Capital Measures for Non-Regulated Risks .pdf • 0,06 MB