Built-in buffers in risk management serve as a form of protection against uncertainties and potential losses that may arise in various processes or investments.

2 mins 1 mth

These buffers are essentially reserves or margins that are deliberately integrated into systems or strategies to mitigate risks. Their purpose is to absorb unexpected fluctuations, prevent disruption, and ensure stability during unforeseen events. In financial risk management, for example, buffers can be capital reserves that […]

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