by Dean Karlan, Jonathan Morduch, Pamela Jakiela, Xavier Gine
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Suggested foundations for risk measurement and stress. Specialist prerequisites vary by paper.
Represent losses as a distribution rather than one forecast.
Distinguish a loss quantile from the average loss in the tail.
Compare risk estimators and their assumptions.
Check forecasts against realised losses.
Connect diversification, common risk factors, investor views, and the properties of a risk measure.