Spectral risk measure

Spectral risk measures are a class of risk measures that incorporate a risk-averse decision-maker's preferences regarding the probability distribution of risks. They are particularly useful in financial risk management and portfolio optimization. ### Key Features of Spectral Risk Measures: 1. **Probabilistic Approach**: Spectral risk measures utilize the entire probability distribution of potential losses rather than focusing on specific loss thresholds (like Value at Risk) or specific moments (like expected shortfall).