Financial risk managementFinancial risk management is the practice of protecting economic value in a firm by managing exposure to financial risk - principally operational risk, credit risk and market risk, with more specific variants as listed aside. As for risk management more generally, financial risk management requires identifying the sources of risk, measuring these, and crafting plans to address them. See for an overview. Financial risk management as a "science" can be said to have been born with modern portfolio theory, particularly as initiated by Professor Harry Markowitz in 1952 with his article, "Portfolio Selection"; see .
Risk aversionIn economics and finance, risk aversion is the tendency of people to prefer outcomes with low uncertainty to those outcomes with high uncertainty, even if the average outcome of the latter is equal to or higher in monetary value than the more certain outcome. Risk aversion explains the inclination to agree to a situation with a more predictable, but possibly lower payoff, rather than another situation with a highly unpredictable, but possibly higher payoff.
Hyperbolic absolute risk aversionIn finance, economics, and decision theory, hyperbolic absolute risk aversion (HARA) refers to a type of risk aversion that is particularly convenient to model mathematically and to obtain empirical predictions from. It refers specifically to a property of von Neumann–Morgenstern utility functions, which are typically functions of final wealth (or some related variable), and which describe a decision-maker's degree of satisfaction with the outcome for wealth. The final outcome for wealth is affected both by random variables and by decisions.
Utilitarismevignette|Portrait de Jeremy Bentham, par Henry William Pickersgill.|alt=Portrait de Jeremy Bentham peint par Henry William Pickersgill. vignette|Portrait de John Stuart Mill, par George Frederic Watts.|alt=Portrait de John Stuart Mill peint par George Frederic Watts. L’utilitarisme est une doctrine éthique qui prescrit d'agir (ou de ne pas agir) de manière à maximiser le bien-être collectif, entendu comme la somme ou la moyenne de bien-être (bien-être agrégé) de l'ensemble des êtres sensibles (dont on peut omettre ceux qui ne sont pas affectés par l'acte considéré).
