# Risk

- Canonical URL: https://www.gerhardmerk.de/risk
- Post ID: 587212
- Modified: 2023-07-25T21:13:36+00:00
- Language: en

## Definition

In general, the possibility of the occurrence of undesirable future events and consequences of actions, because - due to the course of time - in nearly all types of human engagement there is the potential for events and consequences that constitute chances for benefit [upside] or loss [downside]. - Statistically-mathematically defined: the product of - the probability of occurrence of an event and - the amount of damages of this event. - Apart from certain exceptions - especially in actuarial mathematics - the probability estimation cannot be measured objectively, factually completely unbiased. It remains, what is unfortunately often glued with mathematical formulas and therefore not perceived, in any case dependent on conditions (premises; premises, judgment presuppositions). Therefore, even the most sophisticated risk calculations cannot express anything other than expectations - especially on the financial market. - In the case of a commitment on the financial market, the uncertainty over future asset values and future returns in respect to the investment timeframe. - In insurance often also said of the insured object or person. - See hedging, call risk, bancassurance risk committee, investment risk, balance sheet item capping, credit risk, due diligence, contingent loss, expected shortfall, financial stability report, maturity transformation risk, foothold risk, guarantee product, exposure, information overload, correlation risk, general, accumulation, liquidity risk, market liquidity risk, phantom risk, refinancing risk, residual risk, Risk-return principle, reputational risk, risk inventory, risk, performance risk, risk culture, risk avoidance policy, risk carrier, ultimate, commodity forward contract, setback effect, solvency, solvency risk, speculator, spread risk, forward risk, tracking error, turnover risk, uncertainty, value at risk, risk of loss, insurance contract, dilution risk, volatility, replacement risk, lemon trading, twelve-field risk matrix. - Cf. Deutsche Bundesbank Monthly Report of September 2005, p. 62 f. (correlation between risk and volatility in financial markets), BaFin Annual Report 2008, p. 56 (regulations for liquidity risk management). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

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