Difference between revisions of "Risk Capacity"
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== Definition == | == Definition == | ||
| − | '''Risk Capacity''' denotes the maximum level of | + | '''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. | 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. | ||
| Line 6: | Line 6: | ||
== See Also == | == See Also == | ||
* [[Risk Appetite]] | * [[Risk Appetite]] | ||
| + | * [[Capacity]] | ||
---- | ---- | ||
[[Category:Risk Management]] | [[Category:Risk Management]] | ||
Latest revision as of 18:47, 10 August 2021
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.
