Blog Category: Financial Terms
Get definitions and guidance on all the terms you need to know within accountancy and finance.
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...
What is Forward Rate Agreement?
An instrument that guarantees that a particular rate will be earned during a specific future period is called a forwa...
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 ...
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.