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.

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

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

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

The sum of money that needs to be retained by the savings institutuion in order to leverage any risks that are associated with the day to day running of the business.

A method used in advertising where the same ad is broadcast at the same time on all available stations or channels.

A major city tour by the team of management and the underwriters of an IPO prior to the offering date that is designed to garner interest for the investment.

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

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

A frequently and necessary concept used in mathematical finance to measure the probability to evaluate the worth of a derivative.

The amount of funds that must be kept on hand by a bank or finance company.

1. General.The continuos operation of a process regardless of any external changes that may affect it. 2. Statistics. A test or procedure that is mostly unaffected by the departure of any assumptions

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

1. The ability of a material to return to its size and shape after deformation. 2. The ability of a piece of machinery or a system to absorb impact of a component

A method and standard of measuring the hardness and penetration resistance of a material that is expressed as a number that has been assigned to the depth of penetration to a diamond

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

The measure of costing the quantity of a resource that will be used by a certain activity. Used to allocate costs that are appropriate to the activity.

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

A key encryption used in PGP or pretty good privacy situations and secure electronic commerce, SEC and is part of ISO and ANSI standards of encryption.

The establishment of an account that finances the cycle of operations of amounts received.