Fat Tail
A fat tail is a probability distribution that more commonly forecasts movements of 3 or more standard deviations than...
What is Expected Shortfall?
Expected shortfall is a risk metric that includes expected losses above and beyond the VaR level.
Loss Ratio & Its Importance
A loss ratio is defined as the percentage of payouts or claims against the premium generated during the period.
What is Risk Data Aggregation?
Risk Data Aggregation is defining, collecting & processing risk data in accordance with the bank's risk reporting req...
Swap In Finance
A swap is a financial derivative in which two parties agree to exchange payments based on the movement of an underlyi...
Skewness: Deciphering the Symmetry of Distributions
Skewness, a measure of a distribution's symmetry, is the standardised third moment by dividing it by the standard dev...
Reputation Risk with Examples
Reputation risk is the danger that a firm will suffer a loss in public perception due to some factors which is well e...
Arbitrage Pricing Theory
The arbitrage pricing theory is used by investors to make decisions about what assets to buy or sell, and when to do so.
What is Hypothesis Testing?
Hypothesis Testing is an educated statement, based on observations, about what we expect to happen within a population.