The real risk to an organization is in the unanticipated or unexpected

Question: #444

“The real risk to an organization is in the unanticipated or unexpected – exactly what quantitative measures capture least well” Coleman T, (2011), A practical Guide to Risk Management, The CFA Institute, p202.
Required: Describe a model that is considered to be important in the area of financial risk modelling. Discuss the advantages and limitations of this model in a practical risk setting.

Solution: #463

The real risk to an organization is in the unanticipated or unexpected

Financial Risk Modeling is associated with various formal economic practices which assist to determine the aggregate risk in the financial portfolio of any Organization. Risk modelling is directly associated with many subtasks of widely used in financial modelling area.
Therefore, we can say that, risk modeling is an important technique which need to consider w...