| Regulatory Risk | Risk Categories | International Actuarial Association | IAA - Acturial Aspects of ERM for Insurance Companies | The risk arising from changes in regulation or legislation | R |
| Reputational Risk | Risk Categories | China | CIRC C-ROSS Conceptual Framework | The risk of losses due to negative evaluation of insurance undertakings by relevant stakeholders resulting from the insurance undertakings operation or external events. | R |
| Reputational Risk | Risk Categories | International Actuarial Association | IAA - Acturial Aspects of ERM for Insurance Companies | The risk that events could have an adverse impact on an organisation's reputation or brand value. | R |
| Reputational Risk | Risk Categories | International Risk Management Institute | IRMI Terms | The risk that negative publicity regarding an institution's business practices will lead to a loss of revenue or increased litigation. | R |
| Reputational Risk | Risk Categories | The European Economic Area | CEA Solvency II | Type of business risk. The risk that adverse publicity regarding an insurer's business practices and associations, whether accurate or not, will cause a loss of confidence in the integrity of the institution. | R |
| Residual Risk | Risk Categories | International Actuarial Association | IAA - Acturial Aspects of ERM for Insurance Companies | The risk remaining with an organisation following its risk management process and internal controls. | R |
| Reverse Stress Testing | Methods | COSO | COSO | The possibility that events will occur and affect the achievement of strategy and business objectives | R |
| Reverse Stress Testing | Methods | IAIS | IAIS ICP 16 | Reverse stress testing identifies scenarios that are most likely to cause an insurer to fail. Such an approach may help to ensure adequate focus on the management actions that are appropriate to avoid undue risk of business failure. The focus of such reverse stress testing may be largely qualitative in nature although broad assessment of associated financial impacts may help in deciding the appropriate action to take. | R |
| Reverse Stress Testing | Methods | International Actuarial Association | IAA ISAP | A process for identifying events or scenarios that would lead to a predetermined financial indicator for an organization (draft) | R |
| Reverse Stress Testing | Methods | The European Economic Area | Solvency II | The term is mentioned in the Guidelines on the ORSA, but has not been defined explicitly. | R |
| Risk | Risk Categories | COSO | COSO | The possibility that events will occur and affect the achievement of strategy and business objectives | R |
| Risk | Risk Categories | International Actuarial Association | IAA Deriving Value from ORSA | The potential of future losses or shortfalls from expectations due to the deviation of actual from expected results. | R |
| Risk | Risk Categories | United States | U.S. ASB Terms | The potential of future losses or shortfalls from expectations due to deviation of actual results from expected results. | R |
| Risk Appetite | General | COSO | COSO | The types and amount of risk, on a broad level, an organization is willing to accept in pursuit of value. | R |
| Risk Appetite | General | Financial Stability Board | FSB Principles for an Effective Risk Appetite | The aggregate level and types of risk a financial institution is willing to assume within its risk capacity to achieve its strategic objectives and business plan. | R |
| Risk Appetite | General | IAIS | IAIS Supervisory Material | The aggregate level and types of risk an insurer is willing to assume within its risk capacity to achieve its strategic objectives and business plan. | R |
| Risk Appetite | General | International Actuarial Association | IAA - Acturial Aspects of ERM for Insurance Companies | The level and type of risk that an organization is willing to accept in order to achieve its objectives. | R |
| Risk Appetite | General | International Actuarial Association | IAA Deriving Value from ORSA | The level of aggregate risk that a company chooses to take in pursuit of its objectives. | R |
| Risk Appetite | General | International Risk Management Institute | IRMI Terms | The degree to which an organization's management is willing to accept the uncertainty of loss for a given risk when it has the option to pay a fixed sum to transfer that risk to an insurer. | R |
| Risk Appetite | General | United States | NAIC ORSA MANUAL | Documents the overall principles that a company follows with respect to risk-taking, given its business strategy, financial soundness objectives and capital resources. Often stated in qualitative terms, a risk appetite defines how an organization weighs strategic decisions and communicates its strategy to key stakeholders with respect to risk-taking. It is designed to enhance management's ability to make informed and effective business decisions while keeping risk exposures within acceptable boundaries. | R |
| Risk Appetite | General | United States | U.S. ASB Terms | The level of aggregate risk that an organization chooses to take in pursuit of its objectives. | R |
| Risk Appetite Framework | General | Financial Stability Board | FSB Principles for an Effective Risk Appetite | The overall approach, including policies, processes, controls, and systems through which risk appetite is established, communicated, and monitored. It includes a risk appetite statement, risk limits, and an outline of the roles and responsibilities of those overseeing the implementation and monitoring of the RAF. The RAF should consider material risks to the financial institution, as well as to the institution's reputation vis-à-vis policyholders, depositors, investors and customers. The RAF aligns with the institution's strategy | R |
| Risk Appetite Statement | General | Financial Stability Board | FSB Principles for an Effective Risk Appetite | The articulation in written form of the aggregate level and types of risk that a financial institution is willing to accept, or to avoid, in order to achieve its business objectives. It includes qualitative statements as well as quantitative measures expressed relative to earnings, capital, risk measures, liquidity and other relevant measures as appropriate. It should also address more difficult to quantify risks such as reputation and conduct risks as well as money laundering and unethical practices. | R |
| Risk Capacity | Solvency terms | Financial Stability Board | FSB Principles for an Effective Risk Appetite | The maximum level of risk the financial institution can assume given its current level of resources before breaching constraints determined by regulatory capital and liquidity needs, the operational environment (e.g. technical infrastructure, risk management capabilities, expertise) and obligations, also from a conduct perspective, to depositors, policyholders, shareholders, fixed income investors, as well as other customers and stakeholders. | R |
| Risk Capacity | Solvency terms | International Actuarial Association | IAA - Acturial Aspects of ERM for Insurance Companies | The extent of risk that an organisation is capable of undertaking | R |
| Risk Capital | Solvency terms | International Actuarial Association | IAA - Acturial Aspects of ERM for Insurance Companies | Risk Based Capital (RBC) Capital Requirements that reflect the risk profile of the financial institutions. | R |
| Risk Capital | Solvency terms | International Risk Management Institute | IRMI Terms | Capital required to finance the consequences of business risks. | R |
| Risk Capital | Solvency terms | The European Economic Area | Solvency II | The term is mentioned once in de Directive (Solvency II Directive (50)), but has not been defined. | R |
| Risk Capital | Solvency terms | United States | NAIC ORSA MANUAL | An amount of capital calculated to be sufficient to withstand adverse outcomes associated with various risks of an enterprise, up to a pre-defined security standard. | R |
| Risk Exposure | General | The European Economic Area | Solvency II | The term is mentioned in de Directive, but has not been defined explicitly. | R |
| Risk Exposure | General | United States | NAIC ORSA MANUAL | For each risk listed in the company's risk profile, the amount the company stands to lose due to that particular risk at a particular time, as indicated by a chosen metric. | R |
| Risk Limit | General | COSO | COSO | The maximum amount of risk that an entity is able to absorb in the pursuit of strategy and business objectives. | R |
| Risk Limit | General | Financial Stability Board | FSB Principles for an Effective Risk Appetite | Quantitative measures based on forward looking assumptions that allocate the financial institution's aggregate risk appetite statement (e.g. measure of loss or negative events) to business lines, legal entities as relevant, specific risk categories, concentrations, and as appropriate, other levels. | R |
| Risk Limit | General | IAIS | IAIS Supervisory Material | The level of risk to which the insurer is prepared to be exposed. The risk measure might be a supervisory one or an internal one or a combination of both. | R |
| Risk Limit | General | International Actuarial Association | IAA - Acturial Aspects of ERM for Insurance Companies | The maximum amount of risk that can be underwritten. Risk limits will often be identified for key risk-taking activities such as insurance underwriting and investment. | R |
| Risk Limit | General | United States | NAIC ORSA MANUAL | Typically quantitative boundaries that control the amount of risk that a company takes. Risk limits are typically more granular than risk tolerances and may be expressed at various levels of aggregation: by type of risk, category within a type of risk, product or line of business, or some other level of aggregation. Risk limits should be consistent with the company's overall risk tolerance. | R |
| Risk Limit | General | United States | U.S. ASB Terms | A threshold used to monitor the actual risk expousre of a specific unit or units of the organization to ensure that the level of aggregate risk remains within the risk tolerance. | R |
| Risk Profile | General | COSO | COSO | A composite view of the risk assumed at a particular level of the entity, or aspect of the business model that positions management to consider the types, severity, and interdependencies of risks, and how they may affect performance relative to its strategy and business objectives. | R |
| Risk Profile | General | Financial Stability Board | FSB Principles for an Effective Risk Appetite | Point in time assessment of the financial institution's gross and, as appropriate, net risk exposures (after taking into account mitigants) aggregated within and across each relevant risk category based on forward looking assumptions. | R |
| Risk Profile | General | International Actuarial Association | IAA - Acturial Aspects of ERM for Insurance Companies | A description of the risk exposures of an organization. | R |
| Risk Profile | General | International Actuarial Association | IAA Deriving Value from ORSA | The characteristics of the material and relevant risks to which a company is exposed over a specified period of time. | R |
| Risk Profile | General | The European Economic Area | Solvency II | The term is used a lot in de Directive, but has not been defined explicitly. | R |
| Risk Profile | General | United States | NAIC ORSA MANUAL | A delineation and description of the material risks to which an organization is exposed. | R |
| Risk Tolerance | General | IAIS | IAIS Supervisory Material | Used to include the active retention of risk that is appropriate for an insurer in the context of its strategy, financial strength, and the nature, scale and complexity of its business and risks. Risk tolerance is typically a percentage of the absolute risk bearing capacity for an insurer. | R |
| Risk Tolerance | General | International Actuarial Association | IAA - Acturial Aspects of ERM for Insurance Companies | A quantitative description of the extent of risk that the company is willing to take in respect of a specific risk. | R |
| Risk Tolerance | General | International Risk Management Institute | IRMI Terms | The willingness of an organization to incur risk to gain future reward. | R |
| Risk Tolerance | General | The European Economic Area | Solvency II | The term risk tolerance limit is used in de Directive itself and Guidelines on the ORSA, but has not been defined explicitly. (Solvency II Directive art. 45 on ORSA) | R |
| Risk Tolerance | General | United States | NAIC ORSA MANUAL | The company's qualitative and quantitative boundaries around risk-taking, consistent with its risk appetite. Qualitative risk tolerances are useful to describe the company's preference for, or aversion to, particular types of risk, particularly for those risks that are difficult to measure. Quantitative risk tolerances are useful to set numerical limits for the amount of risk that a company is willing to take. | R |
| Risk Tolerance | General | United States | U.S. ASB Terms | The aggregate risk-taking capacity of an organization. | R |