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Exogenous Risk

A category of financial risk that represents influences or shocks to the financial system, and its institutions, come from external...

Endogenous Risk

A category of financial risk that arises from the interaction of market participants. It is created endogenously (as opposed to...

Confidence

The percentage of times (a a probability value) that an estimate is expected to be produced between the upper and...

Confidence Level

The percentage of times (a a probability value) that an estimate is expected to be produced between the upper and...

Normal Distribution

A bell-shaped curve that depicts a continuous probability distribution for a real-valued random variable. For a range of measurement values,...

Gaussian Distribution

A bell-shaped curve that depicts a continuous probability distribution for a real-valued random variable. For a range of measurement values,...

Systemic Risk

A type of risk that reflects the probability that cumulative losses will arise from an event that triggers a series...

Funding Risk

A type of risk (similar to a basis risk) that arises from a mismatch between the revenues an entity generate...

SWWR

It stands for specific wrong way risk; a type of wrong way risk (WWR) that comes into play because of…

Specific WWR

It stands for specific wrong way risk; a type of wrong way risk (WWR) that comes into play because of…