Discuss the tail risk and the importance of managing tail risk in financial institutions. Compare and contrast two commonly used tail risk measures and critically analyze why the Basel Committee intends to shift from value-at-risk to expected shortfall to

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Discuss the tail risk and the importance of managing tail risk in financial institutions. Compare and contrast two commonly used tail risk measures and critically analyze why the Basel Committee intends to shift from value-at-risk to expected shortfall to measure market risk.

 

3000 words