http://alephblog.com/2009/01/20/liquidity-management-is-the-first-priority-of-risk-management/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Mon, 13 Feb 2012 16:41:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://alephblog.com/2009/01/20/liquidity-management-is-the-first-priority-of-risk-management/comment-page-1/#comment-20755 John Wed, 21 Jan 2009 14:17:43 +0000 http://alephblog.com/?p=1344#comment-20755 I was curious if you could go into more detail regarding an actuarial model of risk compared to financial model of risk. I believe I understand a financial model of risk tends to equate volatility and correlation with risk. This seems to lead to more risk in long term as low volatility generally seems to equate to higher leverage in order to hit targeted levels of return. I was curious if you could go into more detail regarding an actuarial model of risk compared to financial model of risk. I believe I understand a financial model of risk tends to equate volatility and correlation with risk. This seems to lead to more risk in long term as low volatility generally seems to equate to higher leverage in order to hit targeted levels of return.

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