Nice discussion here on some very current trends in risk management tools and practices.
I particularly liked this paragraph, though, because so much early risk management was superficially focus on VAR which used to flabbergast me to no end:
“The halo surrounding Value-at-Risk (VaR) as a standalone measure of risk has lost much of its luster. The electric power market’s enormous price moves led to questions about the ability of the underlying pricing models to accurately depict real-world markets. The collapse of Enron pointed to other risks, such as credit risk, that hadn’t been closely monitored at many firms.”