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exposure to risk meaning

  • [Economics]
    The extent to which lending institutions would lose if particular borrowers or classes of borrower were to default on their obligations. Exposure to risk can be kept down both by choosing relatively safe forms of investment, such as the government debt of countries considered unlikely to default, and by avoiding having too large a percentage of assets invested in the debt of any one borrower or class of borrower.

Examples

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  1. members of the public should take necessary precautions to reduce their exposure to risk posed by heavy rain, such as flooding
  2. members of the public should take necessary precautions to reduce their exposure to risk posed by heavy rain, such as flooding
  3. the cost-plus pricing policy enabled the group to continue managing its exposure to risks associated with aluminum price fluctuations
  4. the cost-plus pricing policy enabled the group to continue managing its exposure to risks associated with aluminum price fluctuations
  5. action members of the public should take necessary precautions to reduce their exposure to risk posed by heavy rain, such as flooding

Related Words

  1. exposure netting meaning
  2. exposure notification meaning
  3. exposure notifications meaning
  4. exposure station meaning
  5. exposure therapy meaning
  6. exposé meaning
  7. expound meaning
  8. expounder meaning
  9. expounding meaning
  10. express meaning
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