Return on risk-adjusted capital (RORAC)

Return on risk-adjusted capital (RORAC) is a target return on equity (ROE) measure in which the denominator is adjusted depending on the risk associated with the instrument or project. [Source: Casualty Actuarial Society (CAS) Overview of Enterprise Risk Management]

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Risk-adjusted return on capital (RAROC)

Risk-adjusted return on capital (RAROC) is a target return on equity (ROE) measure in which the numerator is reduced depending on the risk associated with the instrument or project. In insurance indus

Risk-adjusted return on risk-adjusted capital (RARORAC)

Risk-adjusted return on risk-adjusted capital (RARORAC) is a combination of Risk-adjusted return on capital (RAROC) and Return on risk-adjusted capital (RORAC) in which both the numerator and denomina

Risk Control

Risk control is the process of identifying, monitoring, limiting, avoiding, offsetting and transferring risks. The primary objective of risk control is to maintain the risks that have been retained by