“Volatility has always been a feature of markets. In a 1989 research paper, Dan Galai, along with Menachem Brenner, proposed creating an index—which they called Sigma—to track the volatility of stocks. That research eventually helped inspire Chicago Board Options Exchange (now Cboe Global Markets Inc.) to create the VIX, known as Wall Street’s ‘fear gauge.’”Bloomberg
May 21, 2020
“Market risk is different from credit risk and from reputation risk. And the metric is also different.”
Click on Read More (below) for full text (no paywall).
Reputation risk is the behavioral economic peril of angry disappointed stakeholders.
Risk governance and management, risk financing, and risk transfer through insurances comprise the constituent elements of a comprehensive enterprise reputation risk management solution.
What’s your strategy?