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Risk-adjusted Performance Measurement (RAPM) Survey

RAPM Survey 2007 by PRMIA is just out. Some of the key findings are

  • The greatest future uptake of RAPM is geographically in the Asia/Pacific region and, by sector, in Energy. The greatest current usage of RAPM is in Banking, Insurance and Alternative Investments.
  • RAROC continues to dominate RAPM calculations with EVA usage in distant second-place.
  • Credit Risk is the most frequently and accurately incorporated risk measure in RAPM reporting.
  • At firms where RAPM is not in use, the most frequently cited reason was a lack of funding.

PD/LGD usage
Full report is available to PRMIA member.

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