A detailed exploration of the term 'Exposure to Risk,' its definition, historical context, and associated key concepts in economics.
Combining two or more risky projects with uncorrelated returns to reduce overall risk dispersion. Crucial in insurance and investment portfolios.
An analysis of idiosyncratic risk in economics, its implications and key concepts.
An economic system where insurers transfer part of their risk to other insurers to minimize potential losses.
An in-depth exploration of risk taking in economics, including its definitions, historical context, and various analytical frameworks.
An overview of an actuary and their role in predicting future events to assess risks.
Exploring the definition and meaning of an arbitrageur in economics, including its contexts and implications.
International risk-based capital adequacy standards established for banks in 1988 by the Basel Committee on Banking Supervision.
A rare, unforeseen event with significant impact, as articulated by Nassim Nicholas Taleb.
Overview of capital adequacy and its significance in financial regulation and economic stability
Comprehensive entry defining the Capital Asset Pricing Model (CAPM) in financial economics.
Understanding catastrophic loss and its impact in various contexts
An in-depth understanding of the Chicago Board of Trade (CBOT), a leading futures and options exchange.
A form of structured financial security backed by a portfolio of bonds or loans, segmented by varying levels of risk known as tranches.
The risk associated with the possibility that a counter-party in a financial transaction may default on their obligations.
The protection against risk provided by an insurance policy, including its limitations and coverage extents.
A financial instrument providing insurance against the risk of default on debt instruments.
The part of any insured loss which has to be borne by the insured party; also known as an excess in the UK.
A comprehensive examination of diversification in economics, including its definitions, frameworks, case studies, and related terms.
A type of contract where the price for commodities, securities, or currencies is agreed to be delivered at a future date.
A contract to buy or sell a good, share, or currency on a future date, at a price decided when the contract is entered into.
An exploration of hedging, a strategy to manage and mitigate financial risk in business activities.
A comprehensive look at junk bonds, including their definitions, historical context, and significance within various economic frameworks.
A comprehensive look at life insurance, its definition, historical context, various economic frameworks, and its applications.
The collection of loans held as assets by a financial institution, designed to spread risk and maintain profitability.
A financial practice where businesses use lease agreements to control assets without incorporating them into the balance sheet.
A collection of different assets owned by an individual or a firm, designed for risk reduction and optimizing liquidity.
The choice of proportions in different assets to maximize expected benefit from a given stock of wealth.
The motive to hold money to provide for the unexpected. See also demand for money.
A contractual agreement giving the right, but not the obligation, to sell an asset at a predetermined price on a specified future date.
The preference for a certain pay-off rather than a risky pay-off with the same expected value in economic decision-making.
Definition and Meaning of Risk Avoidance in Economics
Elimination or mitigation of negative consequences of risk through identification, analysis, and strategic measures.
A strategy aimed at mitigating the damage resulting from or the likelihood of the occurrence of an unfavourable outcome of a risky activity.
Acceptance of the favourable or unfavourable outcome of a risky activity
The estimated value of assets of a bank adjusted for risk.
A loan where the creditor has a claim on some particular part of the debtor’s assets in the event of default.
The risk that other parties may fail to fulfill their side of bargains causing potential losses.
A detailed analysis of the concept of a short position in economics, particularly in the context of securities and futures markets.
A loan provided by a syndicate of banks or other lending institutions.
Understanding systematic risk in economic terms, its impacts, and analytical frameworks.
An in-depth look at third-party insurance, its significance, and its variations across different regions.
The difference between the yields on two bonds, which may vary by maturity, issuer risk characteristics, principal amount, or coupon payments.
An individual or firm engaging in risk-taking to achieve expected profits, leveraging superior market information or risk tolerance.
