Financial Exposure

Definition

Financial Exposure. The extent to which an individual or organization is open to Risk of suffering a loss in a transaction, or with respect to some investment or set of investments, e.g., some holding; the amount one stands to lose in that transaction or investment. A more specific form of Exposure

Example

Examples in banking include the total amount of unsecured loans, the amount of loans advanced to a single borrower, group, industry, or country, and the probability of loss from devaluation, revaluation, or foreign exchange fluctuations.

See Also

• Barron's Dictionary of Business and Economics Terms, Fifth Edition, 2012
• http://www.businessdictionary.com/definition/exposure.html

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.