Risk capacity: Difference between revisions

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imported>Doug Williamson
(Create the page to align with qualifications material CertTF Study Session 3 Reading 3.1 page 75.)
 
imported>Doug Williamson
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Near enough the same as risk appetite.
1. ''Banking''.
 
The maximum level of risk a financial firm can assume within the constraints of its regulatory capital and liquidity obligations, and its obligations to depositors, other customers, and shareholders.
 
 
2.
 
In the non-financial sector, the term 'risk capacity' is sometimes used to mean very much the same as risk appetite.





Revision as of 14:33, 31 October 2016

1. Banking.

The maximum level of risk a financial firm can assume within the constraints of its regulatory capital and liquidity obligations, and its obligations to depositors, other customers, and shareholders.


2.

In the non-financial sector, the term 'risk capacity' is sometimes used to mean very much the same as risk appetite.


See also