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RISK GRAPH

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

RISK LIMIT

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

RISK MATRIX

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

RISK MITIGATION

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

RISK NEUTRALITY

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

RISK OF LOSS

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

RISK OF RUIN

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.

RISK PARTICIPATION

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

RISK PERCEPTION

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

RISK POLICY

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

RISK POOL

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

RISK POSITION

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

RISK PROFILE

Any threats that can exposed to a company or organisation.

RISK PROPENSITY

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

RISK RATE

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

RISK RESPONSE

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

RISK RETENTION GROUPS

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

RISK SELECTION

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

RISK SHARING

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

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