<p> </p>
<p>In finance, money is the raw material but risk is the business. Risk assessments are performed at various levels according to standard rules (e.g. Basel II) or flexible internal methods. In both cases, aggregating separate risk types to produce a description of total risk remains a formidable challenge. The presentation includes:</p>
<p>1. The Risk Aggregation Issue</p>
<p>2. Errors in Aggregation</p>
<p>3. Alternative Views of Total Risk</p>
<p>4. An Adapted Aggregation Framework</p>
<p>5. A Factor Model for the ‘Normal’ Case</p>
<p>6. Extension of the ‘Tail’ Case</p>
<p>7. A Business Model for the ‘Stress’ Case</p>
<p>8. Conclusions</p>
<p> </p>
<p> </p>
