Financial Risk Terminology

noun a large diving bird with a long neck, a sharp pointed bill, and a haunting cry

• The loon is a type of waterfowl known for its distinctive calls and behaviors.
• I saw a loon diving for fish in the lake earlier today.
• That guy is a total loon, always coming up with crazy ideas.
• Her mind was like a loon, constantly diving into deep thoughts and resurfacing with new perspectives.

adjective pertaining to, characterized by, or given to speculation, conjecture, or supposition

• The investment in the new technology is purely speculative and may not yield any returns.
• I wouldn't invest in that stock, it's too speculative and risky.
• I'm not into all that speculative stuff, I prefer to play it safe with my investments.
• His speculative theories about the origins of the universe are fascinating but unproven.

noun a situation or problem that will become dangerous or harmful if not addressed

• The authorities successfully defused the time bomb found in the city center.
• I can't believe you're still using that old phone, it's like a ticking time bomb.
• His temper is a total time bomb, you never know when he's going to explode.
• The mounting stress and pressure at work felt like a time bomb waiting to go off.

adjective describing a state of not being controlled or supervised

adverb modifying a verb, indicating that an action is done without being controlled or supervised

• The unchecked growth of the population is a concern for urban planners.
• Leaving your car unlocked is like leaving it unchecked for thieves.
• If you leave your homework unchecked, you're just asking for trouble.
• Her unchecked emotions spilled out in a torrent of tears.

noun Moral hazard is a term used in economics and finance to describe the risk that one party may act in a way that is not in the best interest of another party because the first party does not bear the full consequences of their actions.

• The presence of moral hazard in the insurance industry can lead to increased fraudulent claims.
• When people know they're protected by insurance, they might take more risks - that's moral hazard.
• If you're always bailing out your friend, you're just enabling their moral hazard.
• Ignoring the warning signs of moral hazard is like playing with fire in a dry forest.