Inka Bari, Associate Vice President, Analytics, Sun Life explains that "AI and Machine Learning are used to develop simulations or 'what-if' scenarios...to predict what will happen," thereby enabling insurers to measure and quantity risk
WRI's Paul Reig, Andrew Maddocks and Francis Gassert, in their report, '36 Most Water-Stressed Countries,' listed some quantity risk
indicators for all countries and major river basins worldwide.
Despite these gains, Egypt faces a "quantity risk" in the short-term, and quantity risk will continue to rise in the medium and long-term.
Quantity risk could be reduced though not eliminated through domestic production, but not with the current supply chain and system of government intervention.
This suited the subcontractors as it removed quantity risk
from their contract and left it with the JV.
Opponents of the system may be more apt to accept the other caveat of the measurement system, whereas the DDC agrees to stomach the quantity risk
for the scope of the project, while contractors take the productivity risk with the goals that they set for themselves.
Power producers facing quantity risk
(demand risk), which is primarily caused by weather events, are assumed to choose weather derivatives to extremize an objective function which models their terminal wealth one period later.
Although quantity risk
is difficult to hedge, some of the recent derivative products being developed, e.g., macro swaps, provide a means to hedge quantity risk
(Marshall et al.
Those particularly averse to this quantity risk
may well delay purchase to secondary trading.
* Watch For: How far insurers will take development of ERM programs and whether they can quantity risks
for purposes of decision-making.