Difference between revisions of "Risk Capacity"
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Revision as of 23:37, 18 August 2017
Definition
Risk Capacity denotes the maximum level of risk that a firm can willingly underwrite given its Risk Capital, debt funding sources, and its obligations to stakeholders.
The risks entering capacity discussions are normally readily measurable (quantifiable) risks such as Market Risk, Credit Risk and Insurance Risk which the firm explicitly underwrites as part of its business models.
