Risk: The chance of loss, the degree of probability of loss or the amount of possible loss to the insuring company. For an individual, risk represents such probabilities as the likelihood of surgical complications, medications' side effects, exposure to infection, or the chance of suffering a medical problem because of a lifestyle or other choice. For example, an individual increases his or her risk of getting cancer if he or she chooses to smoke cigarettes.

 

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Risk: The chance of loss, the degree of probability of loss or the amount of possible loss to the insuring company. For an individual, risk represents such probabilities as the likelihood of surgi . . . View Full Definition

Risk Classes: Groups of projects that have approximately the same amount of risk.

Basis Risk: Uncertainty about the basis at the time a hedge may be lifted. Hedging substitutes basis risk for price risk.

Volatility Risk: A measure of risk based on the standard deviation of the asset return. Volatility is a variable that appears in option pricing formulas, where it denotes the volatility of the underlying ass . . . View Full Definition