Risk Management

  • 20 Posts
  • 1 Sections
  • 1 Types
AAA Rating
Fixed Income Risk Management
The highest major credit rating, used to signal very low expected default risk.
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Accrual Rate
Economics Risk Management
The share of pensionable pay a defined-benefit plan credits for each year of service.
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Actuarial Assumption
Risk Management Statistics
A forecast about mortality, returns, expenses, or behavior used to price and value insurance and pension promises.
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Actuarially Fair Odds
Economics Risk Management
Odds or premiums set equal to expected loss before expenses, capital costs, and risk loadings are added.
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Actuary
Risk Management Statistics
A specialist who uses probability, statistics, and finance to value uncertain future cash flows and manage risk.
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Annuity
Personal Finance Risk Management
A contract that converts savings into a stream of payments, often used to manage retirement income and longevity risk.
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Autonomous Pension Funds
Risk Management Economics
Pension funds that are institutionally separate from the sponsoring employer or government budget.
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Average Earnings Scheme
Risk Management Labor Economics
A pension scheme in which benefits are based on average earnings rather than only final salary.
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Bad Bank
Banking Public Finance Risk Management
A vehicle that purchases and works out non-performing or distressed assets so core banks can clean their balance sheets.
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Bank Regulation
Banking Risk Management
Public rules and oversight designed to limit risk-taking and protect the stability of the banking system.
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Basel Agreement
Banking Risk Management
The original international agreement that set minimum capital standards for banks relative to the riskiness of their assets.
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Basel II
Banking Risk Management
The second Basel banking framework, built around minimum capital requirements, supervisory review, and market discipline.
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BBB
Fixed Income Risk Management
BBB is a credit rating at the lower end of investment grade, indicating adequate capacity to meet obligations but meaningful exposure to adverse conditions.
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Bearer Bond
Fixed Income Risk Management
A bearer bond is a bond owned by whoever physically holds the certificate rather than by a registered owner.
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Beta Coefficient
Investments Risk Management
The beta coefficient measures how strongly an asset's returns tend to move with the market as a whole.
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Black Swan
Risk Management Economics
A black swan is a rare event with very large consequences that standard models often fail to anticipate.
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Bond Default Swap
Risk Management Fixed Income
A bond default swap usually refers to a credit default swap written on a bond, transferring default risk from the protection buyer to the protection seller.
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Bond-Rating Agency
Fixed Income Risk Management
A bond-rating agency evaluates the creditworthiness of bond issuers and assigns ratings that summarize default risk.
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Minimax
Microeconomics Risk Management
A decision rule that chooses the action that minimizes the worst-case (maximum) loss; central in zero-sum game theory.
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Securities and Investment Board (SIB)
Banking Risk Management
The former UK financial regulator that supervised self-regulating bodies before the modern UK framework.
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