Here is a brief explanation of each: The first step in analyzing the risks a company faces is to define the risk universe. The risk universe is simply a list of all possible risks. They may fall ...

Broadly, basis risk is the risk that the value of a futures contract or an over-the-counter hedge will not perfectly offset an underlying position. Other examples abound: interest futures are often ...

See risk management and risk mitigation. THIS DEFINITION IS FOR PERSONAL USE ONLY. All other reproduction requires permission.

Ratings agencies quantify the amount of credit risk associated with bonds so investors can understand exactly what they’re getting into. When an investor purchases a bond, they are essentially ...

KRIs form part of a firm’s risk identification process. Typically, institutions also develop risk and control self-assessment (RCSA) programmes as well as risk appetite frameworks and conduct ...