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Financial risk management is the practice of protecting economic value in a firm by managing exposure to financial risk - principally operational risk, credit risk and market risk, with more specific variants as listed aside. As for risk management more generally, financial risk management requires identifying the sources of risk, measuring ...
Underwriter. An actuary is a professional with advanced mathematical skills who deals with the measurement and management of risk and uncertainty. [ 1 ] The name of the corresponding field is actuarial science which covers rigorous mathematical calculations in areas of life expectancy and life insurance. These risks can affect both sides of the ...
Sharpe ratio. In finance, the Sharpe ratio (also known as the Sharpe index, the Sharpe measure, and the reward-to-variability ratio) measures the performance of an investment such as a security or portfolio compared to a risk-free asset, after adjusting for its risk. It is defined as the difference between the returns of the investment and the ...
Finance. Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default. [1][2] Often it is understood to include only downside risk, meaning the potential for financial loss and uncertainty about its extent. [3][4]
Beta (finance) In finance, the beta (β or market beta or beta coefficient) is a statistic that measures the expected increase or decrease of an individual stock price in proportion to movements of the stock market as a whole. Beta can be used to indicate the contribution of an individual asset to the market risk of a portfolio when it is added ...
The risk-versus-reward proposition is an immutable force from the boardroom to the blackjack table. The more risk you take, the more money you stand to gain -- and lose. The rich are masters at...
Credit rating. A credit rating is an evaluation of the credit risk of a prospective debtor (an individual, a business, company or a government), predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaulting. [1] The credit rating represents an evaluation from a credit rating agency of the ...
To take out a life insurance policy on someone other than yourself, you must have a financial stake in their life. It is impossible to take out a life insurance policy against an ailing public ...