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Emerging adequacy

The Committee of Chief Risk Officers’ capital adequacy ‘emerging practice’ guidelines will, says the capital adequacy committee chair, evolve into a new regulatory body within a year. James Ockenden reports

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The Committee of Chief Risk Officer’s (CCRO) capital adequacy white paper, due to be published at the start of August,opens up a new era for energy company risk management. It presents a frameworkfor measuring capital adequacy that not only looks at the traditional metricsof capital and financial liquidity, but also stresses the necessity of includingeconomic capital within the model.

Economic

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