risk equivalent |
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Definition
Sum of money that represents a probable loss from a particular risk. In insurance industry (where it is called 'actuarial equivalent') it is computed on the basis of the expectation of loss and the compensation (benefits) to be paid upon its occurrence.
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risk equivalent is in the Accounting & Auditing, Disaster Planning & Risk Management, General, Marine, & Life Insurance and Statistics, Mathematics, & Analysis subjects.
risk equivalent appears in these other term: credit risk equivalent
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