What is Risk Appetite?
Risk appetite refers to the level (and types) of risk that a firm is willing to retain.
Respondent banks with no international presence can use cross-border correspondent connections to operate in jurisdic...
If the outcome of one event has no bearing on the likelihood of the other, they are considered independent events.
What is Adjusted R-Squared?
The adjusted R squared modifies the standard R squared to account for the degrees of freedom used when estimating mod...
What is Poisson Distribution?
Poisson random variables are used to measure counts of events.
Total Return Swap
Total Rate of Return Swaps exchange a reference asset's total return for a floating rate such as LIBOR plus a specifi...
Special Purpose Vehicle
A special purpose vehicle (SPV) is a subsidiary company that is formed to undertake a specific business purpose or ac...
What is Rogue Trading
Rogue traders act recklessly and independently of others, often harming their employers and clients in the process.
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.