What Is Risk Compensation?

Risk Compensation

Risk compensation

This entry lacks an information bar and an overview map . Supplementing related content makes the entry more complete and can be upgraded quickly. Come on!
Risk Compensation
The risk compensation mainly refers to the price compensation for the risk commitment beforehand (before the loss occurs).
For those risks that cannot be managed through risk diversification, risk hedging, or risk transfer, and that are unavoidable and have to be assumed, investors can take a risk premium on the transaction price, that is, increase the risk return to obtain risk Price compensation.
Commercial banks can fully consider various risk factors in advance in the pricing of financial assets and obtain reasonable risk returns through price adjustments.

IN OTHER LANGUAGES

Was this article helpful? Thanks for the feedback Thanks for the feedback

How can we help? How can we help?

RELATED ARTICLES