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What is Rogue Trading: A Introductory Guide
Rogue traders act recklessly and independently of others, often harming their employers and clients in the process.
Operational Risk
Operational risk is the risk of losses caused by flawed or failed processes, policies, systems or events that disrupt...
What is Expense Ratio?
The expense Ratio is the ratio of expenses to premiums generated. Using it, companies can determine their efficiency.
What is Simulation Modelling
The purpose of simulation is to discover and comprehend the variables that control an existing or prospective system.
What is Bayes’ Rule?
By using knowledge about one event's outcome, Bayes' Rule allows us to estimate the unconditional probability of anot...
What is Net Asset Value?
The Net Asset Value is calculated by adding all assets, subtracting all liabilities, and dividing them by shares outs...
Cluster Analysis
Cluster Analysis helps risk managers in identifying different groups (clusters) in a given portfolio data.
Risk Management Process with Examples
Risk management includes the sequence of activities to reduce or eliminate an entity’s potential risk. Read below &...
Put-Call Parity
Put-call parity allows investors and risk managers to calculate the price of either put or call if the value of anyon...
Short Selling
Short selling is when an investor borrows a security and sells it on the open market, intending to repurchase it for ...
What is Securitization?
Securitization is the procedure where an issuer designs a marketable financial instrument by merging or pooling vario...
Euler’s Theorem
The generalization of Fermat's theorem is known as Euler's theorem.