Economic Capital and RAROC Primer
The world's largest and most profitable financial institutions have long used Economic Capital and risk-adjusted return on capital (RAROC) to manage their businesses. Economic Capital and RAROC can be used to link risk, capital and shareholder value in a framework that allows performance to be evaluated efficiently and effectively at all levels of a company.
Over the past few years, technological and theoretical advances have made Economic Capital and RAROC a realistic choice for a wider range of institutions, including smaller financial firms, insurers and non-financial corporations. To learn more about this framework, and what it can do for you, explore the resources below.
An Overview: Economic Capital & RAROC
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