Abstract
M.Sc. (Statistics)
Most people in the world rely on a well-functioning and stable financial system. Problems
experienced by financial institutions, such as too little liquidity or large amounts
of bad debt, can easily influence companies and individuals, creating a chain reaction
comparable to an avalanche. Financial institutions are faced with a very difficult constrained
optimization problem - generating as much profit as possible while staying
in business by limiting the amount of risk taken.