Abstract
Recent work by Ruhm, Mango, and Kreps, known as the RMK Framework, has proven to be a great advance in the theory of risk. The RMK Framework is a way of viewing an allocation problem that focuses on the scenarios of greatest concern and the probability that those scenarios take place. This paper avoids the mathematical details of the model, but instead gives three applications for the RMK Framework, using non-technical language to explain the basic concept.
Volume
Spring
Page
353 - 366
Year
2005
Categories
Financial and Statistical Methods
Risk Pricing and Risk Evaluation Models
Publications
Casualty Actuarial Society E-Forum
