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At risk |
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At riskThe exposure to the danger of economic loss. Frequently used in the context of claiming tax deductions. For example, a person can claim a tax deduction in a limited partnership if the taxpayer can show it is at risk of never realizing a profit and of losing its initial investment. See: Value at risk.At risk Similar MatchesSovereign riskSovereign riskThe risk that a central bank will impose foreign exchange regulations that will reduce or negate the value of FX contracts. Also refers to the risk of government default on a loan made to a country or guaranteed by it. Foreign investment risk matrix (FIRM)Foreign investment risk matrix (FIRM)Graph that displays financial and political risk by intervals on which countries may be compared according to risk ratings. Risk neutralRisk neutralInsensitive to risk. Riskless transactionRiskless transactionA transaction that is guaranteed a profit, such as the arbitrage of a temporary differential between commodity prices in two different markets. The evaluation of whether dealer markups and markdowns in OTC transactions are reasonable. According to NASD, markups or markdowns should not exceed 5%. Risk return trade offRisk return trade offThe tendency for potential risk to vary directly with potential return, so that the more risk involved, the greater the potential return, and vice versa. Further SuggestionsLegislative riskCall risk Unique risk War Risk Insurance Company specific risk Risk management Risk controlled arbitrage Risk premium Currency Exchange Risk Fallout risk Country risk Nonsystematic risk Regulatory pricing risk Risk aversion Country economic risk risk/reward Risk transfer Risk adjusted return Shortfall risk Purchasing power risk Risk Systematic risk Completion risk Risk Free Interest Rate Riskless rate of return |
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