The allocation of risk in proportion to all the parties of a contract. Also known as risk allocation.

The application of methods of engineering to the management of risks.

The amount in dollars that represents any probable loss from a possible risk.

1.An expression of duration, magnitude, intensity and raech of a potential risk in montary terms. 2. The probability that exposure to a substance wikll have an adverse effect on an […]

A priority in risk management by the etsablishment of quantitative or qualitative relationships gthat exist between risks and benefits.

A single specific occurence that affects a plan or decision in a negative manner.

A characteristic that is measurable that can affect the value of assets.

A delay in the funding of losses until they are more affordable instead of transferring them to a third party . Refer to finite insurance contract and finite reinsurance .

The certain and known outcome of a transaction , investment or asset.

A security that is considere to be free from riskof any monetary loss.

1. Known with certainty. 2. The interest rate on a virtually free from risk investment.

A diagram showing the possibility of a profit or loss of any given investment.

Detecting actual, perceived, or anticipated financial and operating risks. Refer to risk management , risk quantification , and risk monitoring .

The amount of risk a person from a firm or bank is allowed to expose his employer to.

A decision guided by cost/ benefit analysis made by a firm to control, retain, eliminate, or expand its risks. Refer to risk identification , risk monitoring , and risk quantification […]

Identifying, quantifying, managing, and monitoring financial and operating risk . Refer to risk identification , risk management , risk monitoring , and risk quantification .

Loss control , loss financing , and risk reduction methods used to manage risks.

A table used in analysising risks where the rows show risks and columns show probability of occurence.

An evaluationof the possibility and magnitude of a risk.

A reduction, systematic in nature, of exposure to risks and the possibility of its occurence. Called risk reduction .

The tracking and reporting of exposures to risk to external stakeholders . Refer to risk identification , risk management , and risk quantification .

An attitude of investors where any loss or gain is of equal chance.

The chance of bearing the costs that are associated with destruction , damage or the inability of locating goods, documents and other property.

A risk that is so great that business will not be able to be carried on after it. The loss will exceed profit and the worth of the business.

Similare to risk sharing in that a bank in difficulties financially will offer a risk to another bank to manage.