Risk premium and Risk reporting: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add 2nd definition. Source: Linked pages.)
 
imported>Doug Williamson
(Add links.)
 
Line 1: Line 1:
1. ''Financial reporting - fair valuation.''
The communication of risk and risk management outcomes for the purposes of comparing the results with the policy and the early identification of potential problems.


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.


This is a similar concept to market risk premium in the Capital asset pricing model.
==See also==
* [[Guide to risk management]]
* [[Risk assessment]]
* [[Risk evaluation]]
* [[Risk identification]]
* [[Risk management]]
* [[Risk management reporting]]
* [[Risk policy]]
* [[Risk response]]
* [[Statutory duty]]
* [[Strategic Report]]


 
[[Category:Financial_risk_management]]
2.
[[Category:Risk_reporting]]
 
More broadly, value ascribed by any market participant to a reduction in uncertainty.
 
This value would not necessarily be the same for all market participants.
 
 
== See also ==
*[[Capital asset pricing model]]
*[[Fair value]]
*[[IFRS 13]]
*[[Market participant]]
*[[Market risk premium]]
*[[Rational]]
*[[Risk appetite]]
*[[Risk averse]]
*[[Risk management]]

Revision as of 09:47, 16 March 2021

The communication of risk and risk management outcomes for the purposes of comparing the results with the policy and the early identification of potential problems.


See also

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Risk_premium&oldid=41980’