Important Points for IC 86 - Risk Management Exam

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  • Credit securitisation involves the transfer of assets subject to credit risk.
  • CAT bonds are risk-linked securities designed to transfer a specified set of risks from the issuer to the investors.
  • Weather derivatives are financial instruments that can be used by companies as part of a risk management strategy to reduce the risk associated with adverse or unexpected weather conditions.
  • Finite risk products are particularly useful where the risk sought to be insured against is a high-severity, low-frequency event.
  • Enterprise risk management (ERM) in business includes the methods and processes used by organisations to manage risks and seize opportunities related to the achievement of their objectives.

Risk Management Exam