Category: R

A safe investment model used to compare different risks of investment opportunities to determine the best choices a firm should make. Refer to discount rate and risk premium.

A fictional environment developed by Gerard Debreu and Dr. Kenneth Arrow where all risks of investment are mitigated by an insurance policy.

Any external factors that may hinder any decision making that there is no or little control over.

Fr. In insurance law; the dissolution of a policy or contract of insurance for any cause. Emerig. Traitfi des Assur. c. 16.

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 to cover this loss. An example of a risk transfer is an insurance policy. Refer to risk retention and hedge.

Lat. Duly and formally; legally; properly; technically.

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

In French law. The shore, as of the sea. In English law. A toll anciently paid to the crown for the passage of boats or vessels on certain rivers. Cowell.

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

A product or good that is capable of being used by only one person at any given time.