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Concentration Risk and Concentration Ratio
Concentration risk is the risk of financial loss that may arise due to exposure to multiple counterparties for a spec...
Solvency II
Solvency II is a Directive in European Union law that codifies and harmonizes the EU insurance regulation.
Forward Rates
Forward rates is the settlement price of a transaction that will not take place until a predetermined date. The futur...
Collateralization
Collateralization concept says that when two parties are involved in a trade, one party will have a negative exposure
What is a Confidence Interval?
A confidence interval is a range of parameters that complements the rejection region.
Scenario Analysis
Scenario analysis is a method of evaluating probable future risk factors & alternative outcomes. It assesses the impa...
What are Mortgage Backed Securities Prepayment
Mortgage-Backed Securities are long term contracts with payments of both interest and principal.The prepayment option...
What are Population and Sample?
The entire group about whom you want to make conclusions is a population. A sample is a subset of the population you ...
What is Butterfly Spread?
A butterfly spread is another strategy used by the traders. We purchase or sell three different call options in the b...
Risk Management Strategies
Risk strategies are the foundation of risk management and it's important to have a strong understanding of them.
Key Risk Indicators
Key Risk Indicators help monitor the main drivers of key risks and make informed decisions about managing company ris...
What is Capital Asset Pricing Model?
The capital asset pricing model (CAPM) is a key model used for calculating the return of securities by accounting for...