Location basis risk: The risk that arises when the underlying asset is in a different location from where the futures contract is traded. For example, the basis between actual crude oil sold in Mumbai and crude oil futures traded on a Dubai futures exchange may differ from the basis between ...
What is basis risk? What is risk? What is risk management? What is business risk? What is systemic risk? What is the risk management? How is risk measured? 1. What is nondiversifiable risk? 2. How is it measured? What is financial risk? How is it related to business risk?
When developing a KRI, knowledge of the organization and how it operates -- plus knowledge of the potential risks, threats and vulnerabilities it faces -- are the essential starting points. Without an understanding of the company, it is difficult to identify where it may be at risk. Internal ...
acceptance of the evacuation plans, and also to resilience. These few examples, among others, show how the direct relation among place attachment and risk coping is not clear, being either positive, absent, or negative. One possibility is that this relation could change on the basis of the ...
and ETFs seem so similar is that, when ETFs were designed a few decades ago, they were based on traditional mutual funds. Like mutual funds, ETFs invest in a portfolio of underlying securities, charge management fees, and allow investors to buy and redeem their shares on a regular basis. ...
Change is constant. Just because a risk control plan made sense last year doesn’t mean it will next year. In addition to the above points, a good risk management strategy involves not only developing plans based on potential risk scenarios but also evaluating those plans on a regular basis....
The critical aspect that separates blockchain from all other ledgers and databases is that it’s designed to distribute and record information on a peer-to-peer basis that, once completed, is unchangeable and incorruptible. Immutable verification is one of blockchain’s key features. All data con...
as is the case with the Turkish-Greek dispute on maritime boundaries. The resolution of maritime border disputes entails treating each case on the basis of the applicable international law in compliance with principles such as ‘equitable solution,’‘respect to geography,’‘non-cut...
Understanding Systemic Risk The federal government uses systemic risk as a justification—an often correct one—to intervene in the economy. The basis for this intervention is the belief that the government can reduce or minimize the ripple effect from a company-level event through targeted regulation...
A basis rate swap is a type of agreement in which two parties swap variable interest rates in order to protect themselves against interest rate risk.