Risk Management

Excess Kurtosis: Understanding Distribution Tails
An in-depth look at excess kurtosis, which measures the heaviness of the tails in a probability distribution compared to the normal distribution.
Excess Liability Insurance: Specific Liability Coverage
Excess Liability Insurance provides additional coverage for specific types of liability without added benefits like legal defense costs. Learn its historical context, key aspects, and significance.
Exotic Currency Bond: A Comprehensive Overview
Understand the intricacies and investment potential of exotic currency bonds, including their definition, types, historical context, and notable examples.
Expected Shortfall (ES): A Deeper Insight into Risk Management
An in-depth exploration of Expected Shortfall (ES), a robust risk measure that goes beyond Value at Risk (VaR) by considering the average loss exceeding the VaR threshold.
Export Concentration: A Crucial Indicator in International Trade
Export Concentration refers to the concentration of a country's exports on a narrow range of goods, services, or countries. It impacts trade balance and economic stability.
Export Credits Guarantee Department: Facilitating UK Exports
An in-depth look at the Export Credits Guarantee Department (ECGD), now known as UK Export Finance, which supports UK exporters by insuring against various risks associated with international trade.
Exposure Date: The Commencement of Financial Risk
The exposure date marks the beginning when an investor starts to bear the risk associated with a financial transaction. Understanding this term is crucial for managing financial risk and investment strategies.
Exposure Limits: Managing Potential Loss
An in-depth exploration of exposure limits in trading, covering their definition, importance, types, key events, mathematical models, and more.
Factor Models: Explaining Asset Returns
Comprehensive overview of factor models, their types, historical context, key events, explanations, formulas, importance, examples, and more.
Fat Tail: Understanding Extreme Events in Probability Distributions
Fat Tail refers to probability distributions where extreme events have a higher likelihood than normal. Explore the types, importance, and real-world applications.
Fidelity Bond: Protection Against Employee Dishonesty
A comprehensive overview of Fidelity Bonds, their importance in protecting businesses from employee dishonesty, and the various types, key events, applicability, and related terms.
Fidelity Bonds: Protect Against Employee Dishonesty
A comprehensive overview of Fidelity Bonds, a type of insurance designed to protect businesses from losses incurred as a result of fraudulent acts by their employees.
Fiduciary Liability Insurance: Coverage for Fiduciary Duty Breaches
Fiduciary Liability Insurance provides protection against breaches of fiduciary duty related to employee benefits plans. It helps organizations manage the risks associated with their role as fiduciaries.
Financial Services: Comprehensive Overview
A detailed look into financial services, covering their definition, types, historical context, and relevance in the modern economy.
Firewall: Organizational Barrier for Safety and Stability
A comprehensive guide to understanding firewalls in conglomerates, their historical context, types, key events, and importance. Learn about the mechanisms and relevance of firewalls with examples, diagrams, and more.
First Named Insured: The Primary Policyholder
The First Named Insured is the primary person or entity listed on an insurance policy responsible for policy management and compliance.
Fixed-Rate Investments: Guaranteed Returns with Lower Risk
Fixed-rate investments provide predictable returns by offering a fixed interest rate over a specific period. This type of investment is generally considered safe, making it ideal for risk-averse individuals, though it often comes with lower potential upside compared to other investment types.
Flood Zone: Understanding Areas of Flood Risk
A comprehensive examination of flood zones, areas designated by FEMA with varying levels of flood risk, including historical context, types, key events, importance, and practical considerations.
Foreign Exchange Risk: Understanding Currency Fluctuation Risks
Foreign Exchange Risk involves the potential for losses due to changes in exchange rates. This risk is pivotal for businesses and investors dealing in multiple currencies.
Forfaiting: Debt Discounting for Exporters
Forfaiting is a financial practice where an exporter sells their receivables to a forfaiter at a discount, receiving immediate payment without recourse.
Forward Contract: An Agreement for Future Delivery
A detailed exploration of Forward Contracts, their types, historical context, key events, importance, applicability, examples, and much more.
Forward Contracts: Custom Agreements for Future Transactions
Forward contracts are custom agreements to buy or sell an asset at a specified future date and price, offering flexibility over standardized futures contracts.
Forward Dealing: An Essential Financial Practice
Forward dealing involves trading commodities, securities, currencies, freight, etc., for delivery at a future date with a price agreed upon at the contract's initiation. This method helps hedge future requirements and mitigate risk.
Forward Forward Rate: Future Interest Rate Agreements
The Forward Forward Rate represents the rate of interest that will apply to a loan or deposit beginning on a future date and maturing on a second future date. It is essential in financial planning and risk management.
Forward Rate Agreements (FRA): Understanding Financial Instruments
A comprehensive guide to Forward Rate Agreements (FRA), including historical context, types, key events, explanations, mathematical models, charts, applicability, examples, related terms, and more.
Forward-Rate Agreement (FRA): A Financial Derivative
A comprehensive overview of Forward-Rate Agreements (FRAs), including historical context, types, key events, detailed explanations, mathematical models, and applicability.
Franchise Insurance: Coverage for Group Members within Larger Organizations
Franchise Insurance, also known as wholesale insurance, provides coverage for specific groups within larger organizations. Explore its historical context, types, key events, detailed explanations, mathematical formulas/models, importance, applicability, and examples.
Fraud Triangle: A Model for Understanding Occupational Fraud
The Fraud Triangle is a conceptual framework that explains the factors leading to occupational fraud, namely pressure/incentive, opportunity, and rationalization.
Free Asset Ratio: An Overview
The Free Asset Ratio (FAR) is a vital metric in the insurance industry that compares the market value of an insurance company's assets to its liabilities.
Free Carrier (FCA): Incoterm in International Trade
The term Free Carrier (FCA) is an International Commercial Term (Incoterm) where the seller delivers goods to a terminal or another named place, covering initial transportation risks and costs.
Future Contract: A Standardized Agreement to Trade Commodity at Predetermined Price
A comprehensive definition and explanation of Future Contracts, covering types, examples, and historical context. Learn how future contracts are used in various markets.
Futures Contract: Contractual Agreements for Future Transactions
A comprehensive look into futures contracts, exploring their historical context, types, key events, mathematical models, importance, examples, and much more.
Futures Market: An Overview of Trading Contracts
A comprehensive guide to the futures market, its historical context, types of contracts, key events, importance, applicability, examples, and more.
Gamma: Understanding the Rate of Change in Delta
'Gamma' is a key Greek letter used in options trading to measure the rate of change of Delta with respect to changes in the underlying asset's price. It provides critical insights into the risk and price sensitivity of options.
GARCH: Understanding Volatility in Financial Time Series
Generalized Autoregressive Conditional Heteroskedasticity (GARCH) models are essential for capturing changing volatility in financial time series.
Gearing: Understanding Debt-to-Equity Ratio
Exploration of the financial metric gearing, which measures the ratio of a company's debt to its equity, and its implications for financial stability and risk.
General Insurance: Comprehensive Coverage Against Specified Risks
Explore the multifaceted world of General Insurance, including its history, types, key events, detailed explanations, importance, applicability, and more.
Glass-Steagall Act: A Pivotal US Financial Legislation
The Glass-Steagall Act was a US law enacted in 1933 that separated commercial and investment banking. It aimed to prevent excessive risk-taking in the banking sector, believed to have contributed to the Great Depression. The partial repeal of this act in 1999 is considered a factor leading to the 2008 financial crisis.
Gray Swan: Moderately Unpredictable Events
A 'Gray Swan' refers to events that, while less extreme than Black Swan events, are still somewhat predictable and can have significant impacts.
Greeks: Sensitivity Measures in the Black-Scholes Model
Greeks are the sensitivity measures derived from the Black-Scholes formula, including Delta, Gamma, Theta, Vega, and Rho. They provide insights into how option prices are impacted by changes in market conditions.
Grey List: Preliminary Investigation of Potential Irregularities
An in-depth examination of the Grey List, which includes entities under preliminary investigation where potential irregularities are observed but not yet confirmed.
Guaranteed Residual Value: Ensuring Value at Lease End
An in-depth look at Guaranteed Residual Value, its implications, historical context, types, key events, formulas, and practical examples in various sectors.
Guarantees: Offering Guarantees on Obligations
A comprehensive entry on guarantees, including their definition, types, historical context, examples, and related terms.
Hazard Identification: Recognizing and Defining Hazards
Hazard Identification is the process of recognizing that a hazard exists and defining its characteristics, essential for risk management across industries.
Health Insurance: Comprehensive Coverage Against Medical Expenses
Health insurance provides coverage against medical expenses and loss of earnings due to accident or illness. It can be compulsory or voluntary, with premiums varying based on several risk factors.
Heavy Tails: A Detailed Exploration
An in-depth look into the concept of heavy tails in probability distributions, their significance, types, models, and applications across various fields including finance, economics, and risk management.
Hedge: Techniques Used to Offset Potential Losses in Investments
A comprehensive guide to hedging as a risk management technique, including historical context, types, key events, and detailed explanations.
Hedge: Financial Risk Mitigation
A comprehensive guide to the concept of hedging, including historical context, types, key events, and methods used in financial risk mitigation.
Hedge Accounting: Financial Risk Management
Hedge accounting refers to specific accounting treatments that allow companies to manage the volatility in financial statements caused by derivatives used for hedging against risks.
Hidden Action: Moral Hazard and Its Implications
An in-depth exploration of Hidden Action, its historical context, categories, key events, models, and implications in economics, finance, and beyond.
High-Risk Investments: An Overview
High-risk investments are financial ventures that offer the potential for substantial returns but carry a higher degree of risk and volatility.
Hold Harmless: Understanding Liability Clauses
Hold Harmless agreements protect one party from legal liability for certain damages, often used in contracts across various industries.
Home Insurance: Comprehensive Protection for Your Home
Home Insurance provides financial protection against various risks associated with homeownership, safeguarding residential property from damages caused by specific hazards.
Homeowners Policy: Comprehensive Home Insurance
A comprehensive insurance policy that protects against various risks to the home and its contents, along with providing liability coverage.
ICQ: Internal Control Questionnaire
Detailed exploration of the Internal Control Questionnaire (ICQ), its importance, uses, types, and related concepts.
Idiosyncratic Risk (Unsystematic Risk): Unique to Individual Assets
Idiosyncratic or Unsystematic Risk refers to the risk inherent to a particular asset or small group of assets, distinguished from broader market risks. It represents the variability in returns that can be attributed to firm-specific events or characteristics.
IIA: Institute of Internal Auditors
Comprehensive coverage of the Institute of Internal Auditors, its history, functions, and relevance in modern governance.
Importance: Understanding Critical Value in Data and Risk Management
The concept of importance is crucial in various fields, helping understand the direction of outliers and playing a critical role in risk management within finance.
Income Protection: A Comprehensive Overview
An extensive guide to understanding income protection insurance products designed to safeguard against income disruption.
Income Replacement: Compensating for Lost Income Due to Unforeseen Circumstances
A comprehensive overview of income replacement, including its definition, importance, types, examples, and related concepts. Learn how income replacement works to compensate for lost income in cases of death, disability, and other unforeseen circumstances.
Index CDSs: A Financial Instrument to Mitigate Idiosyncratic Risk
Index CDSs, or Credit Default Swaps, cover a basket of entities, thereby reducing idiosyncratic risk. This article provides a comprehensive overview, historical context, types, key events, mathematical models, and much more.
Institute of Internal Auditors: Professional Body for Internal Auditing
The Institute of Internal Auditors (IIA) is a global professional body dedicated to the advancement and support of internal auditing. Founded in 1945, the IIA plays a pivotal role in enhancing the internal audit profession through various initiatives, including education, certification, and research.
Insurance Broking: An Intermediary Role in Insurance
A comprehensive look into the process of acting as an intermediary between clients and insurance companies to arrange insurance contracts, including its history, importance, and various aspects.
Insurance Company: A Comprehensive Overview
An in-depth look at Insurance Companies, their historical context, types, key events, importance, applicability, examples, and more.
Insurance Cycle: Understanding Market Dynamics in Insurance
The Insurance Cycle, sometimes referred to as the underwriting cycle, denotes the recurring phases of soft and hard markets within the insurance sector. It affects pricing, availability, and insurer profitability.

Finance Dictionary Pro

Our mission is to empower you with the tools and knowledge you need to make informed decisions, understand intricate financial concepts, and stay ahead in an ever-evolving market.