Difference between revisions of "Risk Acceptance"

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(Created page with "== Definition == '''Risk Acceptance''' denotes the process by which an entity accepts a certain risk, either because this is part of the business model (in which case it under...")
 
 
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== Definition ==
 
== Definition ==
'''Risk Acceptance''' denotes the process by which an entity accepts a certain risk, either because this is part of the business model (in which case it underwrites the risk) or because it is deemed as a necessary step in order achieve a business / organizational objective
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'''Risk Acceptance''' denotes the process by which an entity accepts a certain risk, either because this is part of the business model (in which case it ''underwrites'' the risk) or because it is deemed as a necessary condition in order achieve a business / organizational objective
  
== Credit Risk ==
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{| class="wikitable"
In credit risk context, risk acceptance occurs when there is a decision (implicit or explicit) to grant new credit to an external party (client, counterparty, supplier etc.)
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! Risk Type
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! Risk Acceptance Processes
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| Credit Risk
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| In credit risk context, risk acceptance occurs when there is a decision (implicit or explicit) to grant new credit to an external party (client, counterparty, supplier etc.)
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|  Insurance Risk
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| Similarly to credit risk, underwriting insurance entails at the intake of new business that assessment and acceptance of a risk
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|}
  
== Insurance Risk ==
 
Similarly to credit risk, underwriting insurance entails at the intake of new business that assessment and acceptance of a risk
 
  
 
[[Category:Risk Management]]
 
[[Category:Risk Management]]

Latest revision as of 22:25, 8 November 2019

Definition

Risk Acceptance denotes the process by which an entity accepts a certain risk, either because this is part of the business model (in which case it underwrites the risk) or because it is deemed as a necessary condition in order achieve a business / organizational objective

Risk Type Risk Acceptance Processes
Credit Risk In credit risk context, risk acceptance occurs when there is a decision (implicit or explicit) to grant new credit to an external party (client, counterparty, supplier etc.)
Insurance Risk Similarly to credit risk, underwriting insurance entails at the intake of new business that assessment and acceptance of a risk

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