actual risk
11Risk management plan — A Risk Management Plan is a document prepared by a project manager to foresee risks, to estimate the effectiveness, and to create response plans to mitigate them. It also consists of the risk assessment matrix.A risk is defined as an uncertain… …
12risk — In insurance law, the danger or hazard of a loss of the property insured; the casualty contemplated in a contract of insurance; the degree of hazard; a specified contingency or peril; and, colloquially, the specific house, factory, ship, etc.,… …
13Risk — The chance that an investment s actual return will be different than expected. Risk includes the possibility of losing some or all of the original investment. Different versions of risk are usually measured by calculating the standard deviation… …
14Risk-Neutral Probabilities — Probabilities of future outcomes adjusted for risk, which are then used to compute expected asset values. The benefit of this risk neutral pricing approach is that the once the risk neutral probabilities are calculated, they can be used to price… …
15Actual Return — The actual gain or loss of an investor. This can be expressed in the following formula: expected return (ex ante) plus the effect of firm specific and economy wide news. As opposed to expected return, actual return is what investors actually… …
16Risk-Based Haircut — A reduction in the recognized value of an asset in order to produce an estimate for the level of margin or financial leverage that is acceptable to use when purchasing or continuing to own the asset. An analyst undertaking a risk based haircut of …
17Risk-adjusted profitability — A probability used to determine a sure expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value. The New York Times Financial Glossary …
18risk-adjusted profitability — A probability used to determine a sure expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value. Bloomberg Financial Dictionary …
19Enterprise risk management — In business, enterprise risk management (ERM) includes the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives. ERM provides a framework for risk management, which… …
20Volatility risk — in financial markets is the likelihood of fluctuations in the exchange rate of currencies. Therefore, it is a probability measure of the threat that an exchange rate movement poses to an investor s portfolio in a foreign currency.The volatility… …
