Loss Exposure

Loss Exposure

The amount that one risks. For example, if one spends $100,000 buying stock, one has a loss exposure of $100,000 because there exists the theoretical possibility that the value of that stock could go to zero.
References in periodicals archive ?
If physical damage occurs and there is no insurance coverage, the likelihood of drivers defaulting on their auto loans increases, which creates a potential loss exposure for lenders.
Decision-makers can efficiently tailor risk mitigation budgets to the highest loss exposure areas, thus saving money and reducing liabilities to the business.
Summarizing the total expected maximum loss exposure for the 100 largest markets in the United States reveals the markets with the highest subsidies and taxes.
NGIC's net loss exposure to Superstorm Sandy is unlikely to exceed GBP 40 million.
Building code adoption and enforcement, enhanced construction techniques and mitigation devices, can all serve to reduce the loss exposure to windstorms.
Instead, Regions has an unknown level of loss exposure from bonds associated with Lewis, most likely in the form of collateral for loans.
However, in the insurance industry, when a risk manager or your agent is acting as a risk analyst and asks this question, it is generally an attempt to quantify your understanding of loss exposure, your sensitivity to it and your ability to financially withstand an event.
Though we do not have the loan loss exposure of many of our peers, we are taking the necessary steps to ensure that we are adequately augmenting our reserves,' he added.
In response, Risk Management Solutions (RMS) has introduced its new probabilistic Germany River Flood model Numerically based, long-term rainfall simulation methodologies encompass potential flooding scenarios on the Rhine, Danube, Weser and Elbe Rivers, and factor in such circumstances as the time of year, temperature and soil conditions to portray an accurate picture of loss exposure.
The technology is expected to help identify potential bad loans and reduce loss exposure, and generate more potential profits for Cash Now licensees.
The eRelease dashboard also enables servicers to view their open order pipeline at a glance and identify units with a potential for loss exposure with a high level of confidence and control.
Failure to make this assessment may result in management committing to undertake activities in which there are risks that exceed its risk appetite, such as unacceptable performance variability, loss exposure and/or business model incongruities.