Demonstrates complete overview of risk‐adjusted performance measurement (RAPM) and how it can be a key management tool – particularly when combined with an economic capital allocation framework. Discusses RAPM and how it would enable senior management to allocate economic capital more effectively to help to maximize overall risk‐adjusted returns on the whole of the firm’s economic capital. Summarizes with correct risk management methodology institutions should see greater profits and the rest of the benefits to develop strong, risk control structure.
Balance Sheet – Emerald Publishing
Published: Jun 1, 2000
Keywords: Portfolio management; Risk; Capital; Economics; Budgeting