Quantity risk

Occurs when the quantity of an asset to be hedged is uncertain.

Quantity Risk

The risk that an insufficient amount of an investment will be hedged and will result in a loss of the unhedged portion.

References in periodicals archive ?

Inka Bari, Associate Vice President, Analytics, Sun Life explains that "AI and Machine Learning are used to develop simulations or 'what-if' scenarios...to predict what will happen," thereby enabling insurers to measure and quantity risk more accurately.

CrowdReviews Partnered with Insurance Nexus to Announce: The Co-Operators and Sun Life on The Transformational Impact of AI on Canadian Insurance

WRI's Paul Reig, Andrew Maddocks and Francis Gassert, in their report, '36 Most Water-Stressed Countries,' listed some quantity risk indicators for all countries and major river basins worldwide.

Let's conserve water

Despite these gains, Egypt faces a "quantity risk" in the short-term, and quantity risk will continue to rise in the medium and long-term.

Quantity risk could be reduced though not eliminated through domestic production, but not with the current supply chain and system of government intervention.

Reducing risks: Wheat supply in Egypt

This suited the subcontractors as it removed quantity risk from their contract and left it with the JV.

A terminal in 18 months: Richard Meredith and Onur Cayirliolu joint project directors, Limak GMR Joint Venture, explain how Istanbul/Sabiha Gokcen's international terminal was constructed in just 18 months

Opponents of the system may be more apt to accept the other caveat of the measurement system, whereas the DDC agrees to stomach the quantity risk for the scope of the project, while contractors take the productivity risk with the goals that they set for themselves.

Contractors wary of new bid system

Power producers facing quantity risk (demand risk), which is primarily caused by weather events, are assumed to choose weather derivatives to extremize an objective function which models their terminal wealth one period later.

Handling weather related risks through the financial markets: considerations of credit risk, basis risk, and hedging

For example, your uncle the farmer, still has quantity risk. He does not know for sure how many bushels of corn he will produce.

On commodities, risk management, and derivatives

Although quantity risk is difficult to hedge, some of the recent derivative products being developed, e.g., macro swaps, provide a means to hedge quantity risk (Marshall et al.

Financial derivatives: applications and policy issues

Those particularly averse to this quantity risk may well delay purchase to secondary trading.

An analysis of potential Treasury auction techniques

* Watch For: How far insurers will take development of ERM programs and whether they can quantity risks for purposes of decision-making.

Part of the operation: for many reasons, life insurers increasingly embrace enterprise risk management as a strategic tool

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