tailriskiä
Tailriskiä is a Finnish term that refers to the financial risk associated with the tail end of a distribution, often in the context of insurance, finance, or risk management. The concept is closely related to Tail Risk, which describes the potential for extreme loss events occurring beyond the normal expectations, particularly in the unlikely but high-impact "tails" of a probability distribution.
In risk management, tailriskiä highlights the importance of accounting for rare but severe events that can
In insurance, tailriskiä can influence the pricing of policies, the setting of reserves, and the structuring
Overall, tailriskiä emphasizes the importance of preparing for low-probability but high-impact events. Financial entities, insurers, and