Cumulative Density Function
The CDF of a variable X, also known as the X distribution function, represents likelihood that X will have a value le...
Economic Risk: A 7 Step Guide to Understanding
Economic risk usually occurs when currency volatility affects the firm’s cash flows or its competitive standing wit...
Liquidity Coverage Ratio
The LCR focuses on the bank’s ability to weather a 30-day period of reduced/disrupted liquidity
Economic Structure
Economic Structure refers to the shifting balance of output, trade, earnings and employment across several economic s...
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...