LSP FB B2 - UNIT 8: RISK MANAGEMENT

A collective pool

a fund where money from many investors is combined. This allows for diversification and professional management.

Acquisition

the purchase of one company by another

Aggressive investors

These are individuals or entities that seek high returns and are willing to accept a higher level of risk.

Asset class

a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations.

Compensation

the total rewards employees receive for their work.

Conservative investors

those who prioritize capital preservation and risk avoidance.

Cybersecurity

The practice of protecting computer systems, networks, and data from digital attacks, theft, or damage.

Deductible

The amount of money that an insured person must pay out-of-pocket before an insurance company will cover the remaining costs of a claim.

Default

Failure to fulfill an obligation, especially to repay a loan or appear in a court of law.

derail

To cause something to go off track; to prevent something from succeeding.

Downturn

A decline in economic or business activity.

Due diligence

The thorough investigation and research that is conducted before making a business decision, such as an acquisition or investment.

Exclusion

A clause in an insurance policy that specifies what is not covered.

Fraud

Intentional deception to secure unfair or unlawful gain.

Halt

To bring to a stop; to cease or cause to cease moving or operating.

Hedge

To take action to protect against financial loss. In finance, a hedge is an investment that is made to reduce the risk of adverse price movements in another asset.

Inherent

Existing in something as a permanent, essential, or characteristic attribute.

leak

To accidentally or unintentionally disclose secret information.

Merger

The combining of two or more companies into a single entity.

Mitigate

to make less severe

plummet

fall suddenly and steeply

premiums

The amount to be paid for an insurance policy.

proactive

Controlling a situation by making things happen or by preparing for possible future problems.

protocol

A set of rules governing the exchange or transmission of data between devices.

Publication

a published work

Qualitative analysis

A method of research that focuses on understanding the meaning and interpretation of data. It often involves analyzing non-numerical data, such as text, interviews, and observations.

Quantitative analysis

A method of research that focuses on measuring and analyzing numerical data. It often involves using statistical techniques to identify patterns and relationships.

refinement

The process of making something more precise or developed

regulatory

Relating to or concerned with the control of something, especially by rules or laws.

Risk pooling

A concept in insurance where insurers combine the risk of many individuals or entities to reduce the impact of any single loss.

stock market

A place where shares of publicly held companies are bought and sold.