Event Risk
From Open Risk Manual
Definition
Event Risk denotes the potential of adverse Risk realizations that are concentrated in time (materialize within a short time period as a concrete Event). It is a term used broadly and in unrelated contexts.
Risk Types
The following risk types are typical examples of what are denoted as event risks:
- Certain types of Operational Risk
- Certain types of Credit Risk (when refering to major entities)
- Certain types of Insurance Risk (physical event risk)
- Corporate Event Risk in the context of Market Risk
- Jump Risk in the context of Market Risk
