Risk – Page 38 – Fincyclopedia

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Commodity Price Risk

The risk (price risk) that arises from potential changes in the prices of commodities (which in turn affect the derivative...

Price Risk

The risk that arises because the price of an asset underlying a derivative is not known over the course of...

Omicron Risk

The risk that arises from the possibility that changes in credit spreads (omicron) will inversely affect the value of a...

Khatar

A type of gharar (uncertainty) that arises if liability of any of the parties to a commutative contract (aqd mu’awadhah)...

General Wrong Way Risk

A type of wrong way risk (WWR) that comes into play because of general market risk factors (macroeconomic factors) affecting...

Mortality Risk

The risk that arises from the negative effect of wars, epidemics (AIDS, plague, etc.), pandemics (Spanish flu, COVID-19), catastrophes (earthquakes,...

Mismatch Risk

The risk that arises when income decreases due to changes in interest rates associated with changed maturity profile (mismatching) of...

Market Risk

The risk (danger of financial loss) that arises from the possibility that the market may move or shift in an...

Event Risk Covenant

A bond provision that requires that the bond is turned in, or redeemed, at par or at a premium in...

VaR

It stands for value at risk; a risk measure that summarizes in a single number the overall risk (value at...