Nevertheless, as previously discussed (most recently at Digital Preservation 2012), a large part of risk mitigation for digital assets is to diversify against sources of correlated failure.
The dominance of a few big players in the chains of insurance and reinsurance for CDS credit risk mitigation for banks' assets has led to the idea of too interconnected to fail (TITF) resulting, as in the case of AIG, of a tax payer bailout.
"Risk mitigation" is one of Kroll's preferred descriptions of his line of work.
Risk mitigation requires measurement.
His areas of expertise include commercial and residential real estate portfolio investing, corporate business and strategic planning, forecasting, valuation, financial modeling, asset repositioning and risk mitigation through financial hedging for physical assets.
It suggests that, in future, firms will be classed according to whether they add value through "risk assumption" or "risk mitigation".Although brokers in many assets are under pressure, equity brokers have been among the hardest hit, especially at "sell-side" firms.
These assertions support the argument that in the absence of significant assets and other risk mitigation mechanisms, the poor lack the capacity to withstand the consequences of many shocks (Cohen et al. 2005).
Asset protection through risk mitigation involves the concept of layered protection, deterrence, detection, and delaying.
Obviously, many investors are not able to stomach the volatility associated with the equity market, so fixed income will always merit a place in most asset allocations as a risk mitigation tool, but heretofore bond investments were also producing decent returns.
More to the point: panic-proofing, as opposed to, say, asset bubble prevention or "systemic risk" mitigation, should be the central objective of financial stability policy at least insofar as financial stability policy is about preventing macroeconomic disasters.
