risk management

(redirected from Loss Assumptions)
Also found in: Dictionary, Medical, Financial.

risk management

[′risk ‚man·ij·mənt]
(engineering)
The overall systematic approach to analyzing risk and implementing risk controls.

Risk management

The management of an activity, accepting a level of risk which is balanced against the benefit of the activity, usually based on an economic assessment.

risk management

In the building industry, the systemized practice of avoiding potential risks, such as culpability and liability or legal entanglements.

risk management

The optimal allocation of resources to arrive at a cost-effective investment in defensive measures within an organization. Risk management minimizes both risk and costs. See risk assessment and risk mitigation.
References in periodicals archive ?
There are three main types of loss assumptions used in the LAFA data series that extend the core series: (1) loss from primary (e.g., farm) to retail weight, such as damage during harvesting and processing, (2) loss at the retail level (e.g.
Meanwhile, the BFSRs of Bank Audi, Blom Bank and Byblos Bank are unaffected as Moody's believes that their adequate capitalisation enables them to absorb a level of stress in line with Moody's expected loss assumptions.
The second objective is to attempt to suggest some objective thought into the selection of vacancy and credit loss assumptions. Third, this study addresses the issue of reasonableness when comparing the vacancy and credit loss assumption in a direct capitalization analysis, the assumptions presented in a DCF analysis, and the sales comparison approaches for income-producing properties.
This difference in result is caused by the change in the net business casualty loss assumptions ([ILLUSTRATION FOR FIGURE 3 OMITTED] includes the $2,500 business casualty and theft net loss of Example 4 rather than the $1,500 net gain of Example 3).
Loss coverage provided by the structure is in excess of Fitch's expected net loss assumptions. Structural features and various triggers also help mitigate dealer default risk and OEM bankruptcy.
However, the rating agency notes that the bank's current capitalisation is pressured by low loan loss reserves (LLRs) coverage and further provisioning needs, resulting in a projected decline in the bank's capital adequacy metrics by around 8%-9% applying Moody's expected loss assumptions under central stress-test scenario.
Also, a sovereign downgrade may result in increased loss assumptions used for modelling, the agency added.
The bank financial strength ratings (BFSRs) of ACBA-Credit Agricole and Ardshininvestbank are unaffected as Moody's believes that their adequate capitalisation enables them to absorb a level of stress in line with current loss assumptions.
The underlying assumptions used to calculate the net present value (NPV) of residual assets include credit and loss assumptions, prepayment assumptions and an appropriate discount rate.