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Financial Terms related to Risk
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glossary with more than five thousand financial
and business terms.
This document...
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Findthousandsoffinancialtermsatwww.
ftpall.
com
Financial Terms related to Risk
This document is part of the valuable contents
available at www.
ftpall.
com, a free online
glossary with more than five thousand financial
and business terms.
This document can be copied and distributed freely
respecting its original format.
It is forbidden its
transcription, translation or change on its format
without authorization of its author or editor.
RISK
Affiliate risk
• If the parent company of a one-bank holding company (OBHC) or one of the
affiliate banks of multi-bank holding company (MBHC) fail, there is a risk that
Federal Reserve or other private claim holders will sue the non-failing bank to
recover their losses.
Hence, failure of an affiliate presents contingent off-balance
sheet risk.
Bankruptcy risk
• The risk that a firm will be unable to meet its debt obligations.
Also referred to as
default or insolvency risk.
Basis risk
• Is the risk in the basis time series.
This can be infl
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