Financial Risk Monitoring by Control Strategies

In this article we give a brief overview and examples on enhanced risk monitoring using recent developed stability control strategies. These are new useful tools for a better capital protection, risk and stability management in life insurance and pension fund companies. Two new risk control strategies are explained: Binary Switching Stability Monitoring, and Stability Weighted Rating and Ranking.

The strategies presented here are tailored to valuate risk by a steady increase, by low volatilities, by small drawdowns and by short recovery times.