White Paper

Aligning Risk Appetite with Strategic Decision Making

Company: Moody's Analytics

Moody's Analytics case study

Category: Infrastructure

Published: 18 December 2015

Format:

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Overview

Many financial institutions make thoughtful capital investment decisions based on prudent governance, risk metrics, and performance measurement tools. However, too often capital investment decisions do not efficiently allocate resources to focus on the most profitable asset types, industries, geographies, or clients.

To more effectively allocate capital at a return that is accretive to shareholder value while complying with regulatory requirements, firms must define a single enterprise risk measurement framework that views risk from multiple perspectives.

This white paper examines how the economic capital framework can be used as a component of an integrated capital management framework to make financial risk management decisions and manage the shortcomings of regulatory capital.

Categories related to Infrastructure