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The Science Behind Risk Management

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2 Author(s)

Risk management (RM) has a long and storied history in both engineering and finance. As far back as 1800 BC, inscribed in the Code of Hammurabi in ancient Babylon, there is evidence that insurance premiums were paid by farmers to cover the risk of a crop failure. This was essentially an insurance policy, or a way to manage risk, which became a growth industry in Europe during the 1600s with the advent of global trade and the need to mitigate shipping risks.

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Signal Processing Magazine, IEEE  (Volume:28 ,  Issue: 5 )