Financial risk

in economics, situation creating an incentive to take more risk (or otherwise change one's behavior) when another party will bear the costs

any of various types of risk associated with financial transactions, financing or investment

financial trading done directly between two parties, rather than on an exchange

investment paradigm that involves buying securities that appear underpriced by some form of fundamental analysis

a financial risk that a given financial asset, security or commodity cannot be traded quickly enough in the market without impacting the market price

risk of disruption in the financial system with the potential to have serious negative consequences for the financial system and the real economy, as opposed to specific risk associated with any one individual entity, group or component of a system

Hypothetical interest rate on a risk-free investment

body of the European Union overseeing the financial system of the European Union as well as preventing and mitigating systemic risk

vulnerability to significant events which affect aggregate outcomes such as broad market returns, total economy-wide resource holdings, or aggregate income

a subset of operational risk based on a business perspective, including legal liabilities and obligations incurred during business exploitation of opportunities

amount of money needed to secure survival in a worst-case scenario

potential loss to financial capital, social capital and/or market share resulting from damage to a firm's reputation

In economics, finance, and psychology, risk-seeking (also called risk-loving or risk preference) refers to a behavioral tendency to prefer uncertain options with potentially higher rewards over safer alternatives with lower expected value. In other words, risk-seeking individuals derive greater satisfaction or perceived utility from taking chances, even when the probable outcome may be less favorable. This is a big issue seen in stock trading, for example, in where people take the risk to either hold or sell their stocks depending on past market trends.

legal right granted by a debtor to a creditor over the debtor's property

regulatory capital

preference that is neither risk averse nor risk seeking, so a party with such risk neutral preference is indifferent between choices with equal expected payoffs even if one choice is riskier

room where traders operating on financial markets gather

risk that a counterparty (or intermediary agent) fails to deliver a security or its value in cash as per agreement

profitability measurement framework

expected rate of return

the potential loss an institution may incur, as a consequence of decisions that could be principally based on the output of internal models, due to errors in the development, implementation or use of such models

risk of rare events, typically defined as more than 3 standard deviations from expected values, far above the risk of a normal distribution