to measure risk
71Digital Repository Audit Method Based on Risk Assessment — The Digital Repository Audit Method Based on Risk Assessment (DRAMBORA) is a methodology and associated software based toolkit developed by Digital Curation Centre (DCC) and DigitalPreservationEurope (DPE) to support the assessment of digital… …
72Model Risk — A type of risk that occurs when a financial model used to measure a firm s market risks or value transactions does not perform the tasks or capture the risks it was designed to. Model risk is considered a subset of operational risk, as model risk …
73No free lunch with vanishing risk — (NFLVR) is a no arbitrage argument. We have free lunch with vanishing risk if by utilizing a sequence of tame self financing portfolios which converge to an arbitrage strategy, we can approximate a self financing portfolio (called the free lunch… …
74Equity risk — is the risk that one s investments will depreciate because of stock market dynamics causing one to lose money. The measure of risk used in the equity markets is typically the standard deviation of a security s price over a number of periods. The… …
75Excess risk — In statistics, excess risk is a measure of the association between a specified risk factor and a specified outcome (such as contracting a disease). It is the difference between two proportions in epidemiology it s typically defined to be the… …
76Cyclical Risk — The risk of business cycles or other economic cycles adversely affecting the returns of an investment, an asset class or an individual company’s profits. Cyclical risks exist because the broad economy has been shown to move in cycles… …
77Market Risk — The day to day potential for an investor to experience losses from fluctuations in securities prices. This risk cannot be diversified away. Also referred to as systematic risk . The beta of a stock is a measure of how much market risk a stock… …
78Market price of risk — A measure of the extra return, or risk premium, that investors demand to bear risk. The reward to risk ratio of the market portfolio. The New York Times Financial Glossary …
79market price of risk — A measure of the extra return, or risk premium, that investors demand to bear risk. The reward to risk ratio of the market portfolio. Bloomberg Financial Dictionary …
80capital at risk — A measure of possible worst case losses in excess of the average that is used in banking to calculate both capital requirements and certain performance measures, such as risk adjusted return on capital (RAROC). It is usually based on the value at …
