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Combined Ratio
The combined ratio is the summation of both the loss and expenses ratios. A company is considered distressed if it ex...
Basis Risk
Basis risk is the risk that the difference between the spot price and the futures price will be different than what i...
What is Binomial Distribution?
A binomial distribution is a statistical tool used to measure the total number of successes from n independent random...
GARCH Model
GARCH is a statistical model that can be used to analyze a number of different types of financial data, for instance,...
What are Pass-Through Securities?
Pass-through securities are one of the widely used financial instruments. Several mortgages may form the pool for a m...
What is Risk Culture? Unraveling the Essence of Organizational Decision-Making
Risk culture is an element of risk management that can’t be controlled directly because it is embedded in an organi...
Global Financial Crisis & Impact
The global financial crisis (GFC) refers to the period of extreme stress in global financial markets and banking systems
Business Continuity Plan
Business continuity plans detail how a company will operate during and after a disaster. It may include contingency p...
What is a Random Variable in Finance? Navigating Financial Uncertainties
A random variable is a variable with an unknown value or a function that gives values to each of the results of an ex...
CAMEL in finance
In the CAMEL system, five broad factors are used including Capital (C), Asset quality (A), Management (M), Earnings (...
Conditional Distribution
A probability distribution for a sub-population is known as a Conditional Distribution that a randomly selected item ...
What is Kurtosis?
Kurtosis measures a distribution's shape, specifically the total probability in the distribution's tails compared to ...