The power law


Risk managers often want levels of confidence as high as 99%, 99.9% or even 99.97% when calculating value-at-risk. This requires knowledge of the extreme tail of the loss distribution. The trouble is, it's not usually possible to collect enough data to accurately estimate the tail directly. The power law is a way of overcoming this problem.

- Click to download pdf

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: