risk profile

Definitions

1. 1

   A detailed description of the risks, or of certain types of risks, associated with…

   A detailed description of the risks, or of certain types of risks, associated with something.

   • The evaluation stage consisted of providing a risk profile of the current system (baseline risk) and the evaluation of proposed risk reduction measures .
   • There are many variables to consider in a risk profile such as weather, inputs, prices, and yields.
2. 2

   The amount of risk that is involved in an investment.

   • The process involves determining the amount of acceptable project risk, the financial capability of the investing organization, and the risk profile of each investment in its portfolio.
   • This is because interests on deposits are fixed regardless of the risk profile of the assets they support.
   • Interest rate swaps do not change the amount or type of debt outstanding, but they do affect the issuer's debt portfolio and risk profile.
3. 3

   A chart showing profits and losses associated with an asset.

   • Risk profile curves are used to demonstrate these various risk scenarios.
   • The risk profile shows the changes in the value of the bank with respect to changes in in- terest rates for a given asset-liability structure.
4. ›+ 1 more definitionshow fewer

   1. 4

      The amount of riskiness in investments that an individual investor or institution is…

      The amount of riskiness in investments that an individual investor or institution is willing to take.

      • Lending at 5% with a 20-year risk profile is irrational without security backing equal to twice the total loan.
      • The impulse to achieve high returns for the shareholders must be restrained by the company's risk profile.

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