The ability to deliver critical services through and after disruption. It focuses on outcomes for customers and the system, not on preventing every failure. Where it appears →
Operational risk
The risk of loss from inadequate or failed internal processes, people and systems, or from external events. It includes legal risk but not strategic or reputational risk. Where it appears →
Option
A contract giving the holder the right, not the obligation, to buy (call) or sell (put) an asset at a set price. The seller receives a premium for taking on the obligation. Where it appears →
OTC derivatives
Contracts negotiated bilaterally rather than traded on an exchange. They can be tailored but carry counterparty and liquidity risk. Where it appears →
Learn these terms in context, with worked examples and questions.
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