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 denominator are adjusted (for different risks). [Source: Casualty Actuarial Society (CAS) Overview of Enterprise Risk Management]
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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
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: Casua
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
