17.3 Conclusion

Difficult to perform risk management for a firm based on a single metric

Recommendation:

• A suite of decision metrics

• That are distinct and independent (to give different perspectives, reflecting different dimensions of the space)

• And are responsive to different dynamics

However corporate realities often mandate a compromise be struck in the interest of parsimony

• We should reduce complexity as much as possible, but not more so

\(\therefore\) Using a handful of risk metrics is acceptable