New Risk Measures “<i>VaR</i> to the Power of <i>t</i>” and “<i>ES</i> to the Power of <i>t</i>” and Distortion Risk Measures

Distortion risk measures have been popular in financial and insurance applications in recent years due to their attractive properties. The aim of the article is to investigate whether risk measures “VaR in the power of t”, introduced by the author, belong to the class of distortion risk measures, as...

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Main Author: V. B Minasyan
Format: Article
Language:Russian
Published: Government of the Russian Federation, Financial University 2020-12-01
Series:Финансы: теория и практика
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Online Access:https://financetp.fa.ru/jour/article/view/1094
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author V. B Minasyan
author_facet V. B Minasyan
author_sort V. B Minasyan
collection DOAJ
description Distortion risk measures have been popular in financial and insurance applications in recent years due to their attractive properties. The aim of the article is to investigate whether risk measures “VaR in the power of t”, introduced by the author, belong to the class of distortion risk measures, as well as to describe the corresponding distortion functions. The author introduces a new class of risk measures “ES to the power of t” and investigates whether it belongs to distortion risk measures, and also describes the corresponding distortion functions. The author used the composite method to design new distortion functions and corresponding distortion risk measures, to prove that risk measures “VaR to the power of t” and “ES to the power of t” belong to the class of distortion risk measures. The paper presents examples to illustrate the relevant concepts and results that show the importance of risk measures “VaR to the power of t” and “ES to the power of t” as subsets of distortion risk measures that allow identifying various financial catastrophic risks. The author concludes that risk measures “VaR to the power of t” and “ES to the power of t” can be used in risk management of companies when assessing remote, highly catastrophic risks.
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institution Kabale University
issn 2587-5671
2587-7089
language Russian
publishDate 2020-12-01
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record_format Article
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spelling doaj-art-e54bba9712d042aea0c6da06d467bae52025-08-20T03:35:19ZrusGovernment of the Russian Federation, Financial UniversityФинансы: теория и практика2587-56712587-70892020-12-012469210710.26794/2587-5671-2020-24-6-92-107817New Risk Measures “<i>VaR</i> to the Power of <i>t</i>” and “<i>ES</i> to the Power of <i>t</i>” and Distortion Risk MeasuresV. B Minasyan0Higher School of Finance and Management, Russian Presidential Academy of National Economy and Public AdministrationDistortion risk measures have been popular in financial and insurance applications in recent years due to their attractive properties. The aim of the article is to investigate whether risk measures “VaR in the power of t”, introduced by the author, belong to the class of distortion risk measures, as well as to describe the corresponding distortion functions. The author introduces a new class of risk measures “ES to the power of t” and investigates whether it belongs to distortion risk measures, and also describes the corresponding distortion functions. The author used the composite method to design new distortion functions and corresponding distortion risk measures, to prove that risk measures “VaR to the power of t” and “ES to the power of t” belong to the class of distortion risk measures. The paper presents examples to illustrate the relevant concepts and results that show the importance of risk measures “VaR to the power of t” and “ES to the power of t” as subsets of distortion risk measures that allow identifying various financial catastrophic risks. The author concludes that risk measures “VaR to the power of t” and “ES to the power of t” can be used in risk management of companies when assessing remote, highly catastrophic risks.https://financetp.fa.ru/jour/article/view/1094catastrophic risksdistortion risk measuresdistortion functionscomposite methodcoherent risk measuresrisk measures “var to the power of t”risk measures “es to the power of t”
spellingShingle V. B Minasyan
New Risk Measures “<i>VaR</i> to the Power of <i>t</i>” and “<i>ES</i> to the Power of <i>t</i>” and Distortion Risk Measures
Финансы: теория и практика
catastrophic risks
distortion risk measures
distortion functions
composite method
coherent risk measures
risk measures “var to the power of t”
risk measures “es to the power of t”
title New Risk Measures “<i>VaR</i> to the Power of <i>t</i>” and “<i>ES</i> to the Power of <i>t</i>” and Distortion Risk Measures
title_full New Risk Measures “<i>VaR</i> to the Power of <i>t</i>” and “<i>ES</i> to the Power of <i>t</i>” and Distortion Risk Measures
title_fullStr New Risk Measures “<i>VaR</i> to the Power of <i>t</i>” and “<i>ES</i> to the Power of <i>t</i>” and Distortion Risk Measures
title_full_unstemmed New Risk Measures “<i>VaR</i> to the Power of <i>t</i>” and “<i>ES</i> to the Power of <i>t</i>” and Distortion Risk Measures
title_short New Risk Measures “<i>VaR</i> to the Power of <i>t</i>” and “<i>ES</i> to the Power of <i>t</i>” and Distortion Risk Measures
title_sort new risk measures i var i to the power of i t i and i es i to the power of i t i and distortion risk measures
topic catastrophic risks
distortion risk measures
distortion functions
composite method
coherent risk measures
risk measures “var to the power of t”
risk measures “es to the power of t”
url https://financetp.fa.ru/jour/article/view/1094
work_keys_str_mv AT vbminasyan newriskmeasuresivaritothepowerofitiandiesitothepowerofitianddistortionriskmeasures