Risk Glossary

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Judgmental Bias
Judgmental bias occurs during the estimation process as the experts are swayed by the background data and the form of the questions.
Junior Bond
Junior bond is subordinated to more senior bonds in case of bankruptcy, default or similar event, but has priority before equity.
Junior Debt
Junior debt is subordinated to more senior debt but has priority over equity.
Key Control Indicator (KCI)
A Key Control Indicator quantifies how effectively a specific control tool, approach, or methodology is working.
Key Performance Indicator (KPI)
A Key Performance Indicator measures how well something is performing, or how efficient it is.
Key Risk Indicator (KRI)
A Key Risk Indicator measures the riskiness of a specific activity.
Kurtosis
Kurtosis is a measure of "fat tails," i.e., the relative probability of extreme returns compared to usual returns.

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