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 more accurately.
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.
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.