liability risk
61Intergovernmental risk pool — A risk pool is a method used by insurance companies to reduce their exposure to sudden and severe losses caused by large scale catastrophic events.To use a simplified example: an insurance company with many policies in hurricane prone Florida… …
62Unlimited Liability — A type of business where owners share joint and several responsibility for the entire amount of debt and other liabilities amassed by the business. Unlimited liability is not capped at a maximum amount and exists regardless of the amount of… …
63mismatch risk — (1) The risk that a financial institution will suffer either a decline in income or capital because future changes in prevailing interest rates impact assets more or less than they impact liabilities. The component of interest rate risk arising… …
64Consumer's risk — or Consumer risk is a potential risk found in all consumer oriented products, that a product not meeting quality standards will pass undetected though the manufacturer s quality control system and enter the consumer marketplace. See also… …
65attachment of risk — The inception of liability under a contract of insurance to answer for any loss or damage that may result from a risk insured against during the term of the insurance in an amount not exceeding the amount stipulated in the contract. This involves …
66Asset-Liability Committee - ALCO — A risk management committee in a bank or other lending institution that generally comprises the senior management levels of the institution. The ALCO s primary goal is to evaluate, monitor and approve practices relating to risk due to imbalances… …
67assumption of risk — A defense against liability for negligence which is based upon the principle that one who knows, appreciates, and deliberately exposes himself to a danger assumes the risk thereof. 38 Am J1st Negl § 171. An employee by his very act of entering… …
68assigned risk — noun : a risk that qualified underwriters of workmen s compensation or automobile liability insurance would reject under applicable standards but accept so as to permit compliance with state law, the insurance being handled through a pool of… …
69Accountant's Liability — An accountant s legal liability while performing professional duties. An accountant is liable for a client s accounting misstatements. This risk of being responsible for fraud or misstatement forces accountants to be knowledgeable and employ all… …
70employers' liability acts — Statutes (e.g., Federal Employer s Liability Act; Workers Compensation Acts) defining or limiting the occasions and the extent to which public and private employers shall be liable in damages (compensation) for injuries to their employees… …
