Arquivos: Glossário

The case where an investor dislikes greater variation or risk in an expected cash flow. A risk-averse investor prefers a sure cash flow to a risky one of the same expected value.

The system of values, actions, and approach by the organization for addressing risk

Risk data aggregation is an umbrella term referring to the sorting, merging or breaking down of datasets by banks and other financial firms. The Basel Committee on Banking Supervision’s broad requirements for the practice are laid out in its 2013 principles, popularly known as BCBS 239, which detail rules for “defining, gathering and processing risk […]

The set of critical factors that significantly influences where a risk issue will be present

Risk factors are the building block of factor investing. A risk factor is an underlying characteristic or exposure that can be used to explain the return profile of an asset class. The return profile of a bond, for example, is tied to risk factors such as duration, credit spreads and default risk, while a stock’s […]

Sure or certain; involving no risk.

The Interest rate for discounting sure cash flows with no risk. One estimate of a long-term risk-free rate is 3 percent

Example of a risk to which a commercial cannabis businesses is commonly exposed

Process of evaluating and selecting among alternative regulatory and nonregulatory responses to risk. The selection process necessarily requires consideration of legal, economic, and social factors.

The set of risk related policies and procedures delegated to the employee