Category: R

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.