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Risk Appetite

A qualitative measure of risk that reflects the maximum level of exposure to a risk factor that an investor (entity...

Risk

In general, risk in finance represents the probability that actual outcomes/ results will differ from expected outcomes/ results. Often it...

Replacement Cost Risk

The risk that arises from a party to a transaction failing to meet its obligation on the settlement date, so that…

Risk Shifting

The process of transferring/ shifting risk from one party to another, such as from equity shareholders to debtholders of an...

Risk Envelope

A set of probability distributions (also, a set of densities) over which the expected value of a risk instigated costs...

Risk Metric

An attribute of risk that is being measured using a specific model or measure (risk measure). In other words, it...

Risk Measure

A tool (mathematical, statistical, etc.) that is used to assess and determine the amount of risk involved in a position/...

Risk Transformation

A type of risk redistribution that aims to mitigate risk, not only by risk management departments (functional level) but also...

RMVaR

It stands for relative marginal value at risk; a measure of risk (value at risk, VaR) [specifically, marginal value at...

Relative MVaR

It stands for relative marginal value at risk; a measure of risk (value at risk, VaR) [specifically, marginal value at...