The belief that is held about the possibility of a risk event occuring or the extent and timing of the risk.

A firms formal take on corporate goals, activities, and stakeholders expectations regarding risk activities. Refer to risk tolerance .

Statement of the kind of risks and the extent to which a company will expose it self to risks.

An account that is established by insurers to hold funds that will be jointly available in times of loss due to natural disasters.

The concept that the level of risk can be reduced by combining uncorrelated risks. AKA pooling.

The extent of any exposure to a risk expressed in terms of money.

The higher payments made to a firm that invests in high risk ventures with the possibility of default. AKA risk margin. Refer to premium.

Any threats that can exposed to a company or organisation.

The degree an entity is prepared to take a chance with the risk of a loss.

The process of estimating the impact of financial and operating risks on a firm using formulas, statistics, and actuarial techniques. Refer to risk identification and risk management .

The rate of return that is needed to be able to attract loan capital or equity for an investment.

The attempt to reduce financial and operating risk by withdrawal from high risk ventures of risk pooling resulting in diversification . Refer to loss control and loss financing .

The steps or procedures taken to implement the unacceptability of facing a high risk.

Preserving a portion of financial and/or operating risk as opposed to transferring or hedging. Refer to hedging, retention, group, risk transfer , and selfinsurance .

The spreading of exposure by combining firms with similar risk factors by risk pooling . Similar to group captive this is a retention vehicle.

Liablity insurance held by the policy holders.All policy holders will be in the same business and exposed to the same level of risks.

The class that a risk is determined to be in such as sub-standard, standard or preferred.

A method of risk management where risk is distributed evenly among all participants.

The stability of a firms portfolio in regards to how much risk it can withstand.

The sumof non-systematic and systematic risk in trading of securities.

The basic concept of the payment of a premium by someone who is unable to withstand a loss to a firm who agrees according to the terms of the policy […]

The quantity derived by multiplying the probability of a negative impact by its likely impact. Stated in monetary terms.

An element in a situation that a change in its state can cause a change in degree of risk exposure.

The tool used to measure how a financial institution is able to withstand a recession or risk that is a reflection of ite capital.

The rate-of-return, ROR, on an investment from which the ROR on a different investment is deducted as long as the risk is similar.