Risk premium and SREP: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
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1. ''Financial reporting - fair valuation.''
''European Union (EU).''


For financial reporting and fair valuation purposes, risk premium is  defined as additional compensation sought by rational risk-averse market participants for bearing the uncertainty inherent in the cash flows of an asset or a liability.
Supervisory Review and Evaluation Process.


This is a similar concept to market risk premium in the Capital asset pricing model.


 
==See also==
2.
* [[European Banking Authority]]
 
* [[ICAAP]]
More broadly, value ascribed by any market participant to a reduction in uncertainty.
* [[ILAAP
 
* [[Liquidity risk]]
This value would not necessarily be the same for all market participants.
* [[Pillar 2]]
 
* [[TSCR]]
 
== See also ==
*[[Capital asset pricing model]]
*[[Fair value]]
*[[Hurdle rate]]
*[[IFRS 13]]
*[[Market participant]]
*[[Market risk premium]]
* [[Premium]]
*[[Rational]]
*[[Risk appetite]]
*[[Risk averse]]
*[[Risk free rate of return]]
*[[Risk management]]
 
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Risk_frameworks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 20:48, 13 August 2016

European Union (EU).

Supervisory Review and Evaluation Process.


See also