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

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.

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

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

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

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

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

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

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 direct relationship that existes between risk and reward. Also called risk/return tradeoff.

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.