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In toxicology, the margin of exposure (or MOE) of a substance is the ratio of its no-observed-adverse-effect level to its theoretical, predicted, or estimated dose or concentration of human intake. [1] It is used in risk assessment to determine the dangerousness of substances that are both genotoxic and carcinogenic. [2]
Collateral management began in the 1980s, with Bankers Trust and Salomon Brothers taking collateral against credit exposure. There were no legal standards, and most calculations were performed manually on spreadsheets. Collateralisation of derivatives exposures became widespread in the early 1990s.
Risk is the lack of certainty about the outcome of making a particular choice. Statistically, the level of downside risk can be calculated as the product of the probability that harm occurs (e.g., that an accident happens) multiplied by the severity of that harm (i.e., the average amount of harm or more conservatively the maximum credible amount of harm).
The framework replaced both non-internal model approaches: the Current Exposure Method (CEM) and the Standardised Method (SM). It is intended to be a "risk-sensitive methodology", i.e. conscious of asset class and hedging , that differentiates between margined and non-margined trades and recognizes netting benefits ; considerations ...
Exposure Quantification, aims to determine the amount of a contaminant (dose) that individuals and populations will receive, either as a contact level (e.g., concentration in ambient air) or as intake (e.g., daily dose ingested from drinking water). This is done by examining the results of the discipline of exposure assessment. As a different ...
For example, a distributor selling its products to a troubled retailer may attempt to lessen credit risk by reducing payment terms from net 30 to net 15. Diversification – Lenders to a small number of borrowers (or kinds of borrower) face a high degree of unsystematic credit risk, called concentration risk . [ 20 ]
'Exposure assessment' and 'exposure analysis' are often used as synonyms in many practical contexts. Risk is a function of exposure and hazard. For example, even for an extremely toxic (high hazard) substance, the risk of an adverse outcome is unlikely if exposures are near zero. Conversely, a moderately toxic substance may present substantial ...
Risk-weighted asset (also referred to as RWA) is a bank's assets or off-balance-sheet exposures, weighted according to risk. [1] This sort of asset calculation is used in determining the capital requirement or Capital Adequacy Ratio (CAR) for a financial institution.