|
|
|
Term
| Definition |
|
| Exposure
| The amount of risk faced by the financial institution/business unit.
| Frequency | The number of events occurring in a specified timeframe.
| Frequency | See Exposure.
| Maximum loss
| The maximum amount, which is assumed to be lost due to a single event.
| Risk | The possibility of a negative deviation from an expected economic outcome.
| Severity | A measure of the financial impact due to a loss.
|
|
|
|
| |