Chernobai, Anna; Ozdagli, Ali; Wang, Jianlin - 2016 - This version: October 2016
How does business complexity affect risk management in financial institutions? The commonly used risk measures rely on … identification requires knowledge of the risk when it is actually taken. Market-based measures, such as bond yields, not only ignore … the problem that investors are not fully aware of all the risks taken by management due to asymmetric information, but are …