Covariant Risk
From Open Risk Manual
Revision as of 17:44, 15 December 2020 by Wiki admin (talk | contribs) (Created page with "== Definition == '''Covariant Risk''' is an Insurance term indicating a Risk Type that exhibits Correlation between risk realizations. A risk or risks affecting ma...")
Definition
Covariant Risk is an Insurance term indicating a Risk Type that exhibits Correlation between risk realizations. A risk or risks affecting many individuals, households or businesses in the same area and/or at the same time
Examples
- Physical risks such as droughts, earthquakes, tsunamis
- Market risks
- Sovereign crises
