Financial Risk Management Terms

verb to turn away or prevent something from happening

• The new safety measures were implemented to avert any potential accidents in the workplace.
• I had to quickly avert my eyes when I saw something embarrassing happening.
• She managed to avert a disaster by thinking on her feet.
• His quick thinking helped avert a crisis during the meeting.

noun a principle in statistics and probability that states that the result of a large number of trials will tend to approach the expected value

• According to the law of averages, the outcome of a random event will eventually even out over a large number of trials.
• I know I've been losing a lot lately, but hey, the law of averages says I have to start winning soon, right?
• Don't worry about losing a few games in a row, it's just the law of averages at work.
• In life, things may not always go your way, but remember the law of averages - things will balance out in the end.

noun a discrepancy or lack of compatibility between two or more things

verb to match or pair incorrectly or inappropriately

• There seems to be a mismatch between the data in the report and the actual numbers.
• I think there's a mismatch between what he said and what actually happened.
• The outfit she's wearing is a total mismatch with those shoes.
• Their personalities are like a mismatched puzzle pieces, never quite fitting together.

noun the quality of being full of risk or danger

• Investing in high-risk assets involves a certain level of riskiness that should be carefully considered.
• Jumping off cliffs into the water may seem fun, but the riskiness of it is not worth it.
• Riding a motorcycle without a helmet is just pure riskiness, dude.
• Her decision to quit her stable job and pursue her passion for art was a bold move filled with riskiness.

adjective describing a state of not having been revealed or made known

• The unexposed side of the film was still untouched by light.
• I found an unexposed roll of film in the drawer.
• She keeps all her unexposed secrets hidden away.
• His unexposed talents came to light during the performance.

noun a word that identifies a person, place, thing, or idea

verb a word that expresses an action or a state of being

preposition a word that shows the relationship between a noun (or pronoun) and other words in a sentence

• The outcome of the election hangs by a hair, with only a few votes separating the candidates.
• The decision to go on a road trip or not hangs by a hair, we just need one more person to join us.
• His chances of passing the test are hanging by a hair, he really needs to study more.
• The fragile peace agreement between the two countries hangs by a hair, any small incident could lead to conflict.

verb to protect or separate something by creating a barrier or restriction around it

• The company decided to ringfence their profits to ensure they could cover any unexpected expenses.
• Let's ringfence some money for our vacation so we don't overspend.
• I'm going to ringfence my savings for that new gaming console.
• The government promised to ringfence funding for education, but it often gets reallocated elsewhere.

noun a noun is a word that represents a person, place, thing, or idea. In this case, 'binge lending' is a noun because it represents a specific type of lending behavior where a large amount of money is lent out in a short period of time.

• Binge lending refers to the practice of excessively extending credit to borrowers without proper evaluation of their ability to repay.
• Some financial institutions engage in binge lending, offering loans to anyone who applies without considering the risks involved.
• I heard that company is into binge lending, they just keep giving out loans like candy.
• In a way, binge lending is like throwing caution to the wind and hoping for the best outcome, regardless of the consequences.