Risk capital, economic risk capital (ERC)

Unless otherwise defined, the amount of capital that ensures that a company remains solvent and capable of acting even in exceptional situations for a certain targeted solvency level (long-term credit rating). In order to determine the necessary amount of capital, various types of calculation are presented in theory and practice – and here especially in the annual reports of larger institutions. – See Basel II, liquidity risk, risk, operational, exuberance.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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