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John Jones from Barclays felt that "appropriate allocation" of risk made plenty of sense.
Gaining an efficient allocation of risk implies that shareholders should be charged with handling risk.
This paper examines the optimal allocation of risk in an overlapping-generations economy.
(2) Efficient allocation of risk capital by banks and other financial firms.
This argument insists that having an efficient allocation of risk within a firm is essential for overall efficiency.
Because of this feature, the allocation of risk between insurers and reinsurers is more efficient.
Develop a sensible specification – 'must haves', not 'would like to haves' – with appropriate allocation of risk and reward and a clear and realistic execution, contracts management plan and exit strategy.
It compares the allocation of risk the economy reaches naturally to the allocation that would be reached if generations behind a Rawlsian "veil of ignorance" could share risk with one another through complete Arrow-Debreu contingent-claims markets.
There are two ways to structure an offer for an exchange of shares, and the choice of one approach or the other has a significant impact on the allocation of risk between the two sets of shareholders.
As far as justice is concerned, the perceived fairness of the process by which risks are communicated and selected, and risk management strategies are devised, is as important as the actual allocation of risk.
The reason is that highly risky activities typically affect a large number of individuals, such that strict liability implies a quite unfavorable allocation of risk.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com