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 ?
Such developments are causing underwriters a lot of concern, given that their loss exposure can hinge on what type of activity it is that causes damage--whether simple acts of piracy or an act of terrorism.
Whatever the consequence, the loss exposure exists and it's not going away anytime soon.
This benefit, along with the new tax ruling regarding captives, adds a new dimension to the cost determination of retaining loss exposure in a consolidated group.
Noting that he and his fellow modeling firms long have been forcing users to adapt to each of their own proprietary data formats, Clinton said a move toward open standards would allow insurers to assess and manage catastrophe loss exposure more effectively.
Or, for a company with little data, but whose loss exposure may be assumed to be similar to a peer group, a survival ratio analysis of that peer group may be considered an interim indication of a reserve need, until more useful information is available.
In this incident, we were linked publicly and it would have been reasonable for analysts to believe we would have a significant loss exposure.