What does tolerance mean?

Risk tolerance, also known as risk tolerance, refers to the acceptability of differences in the realization of enterprise goals and the tolerance limit of differences in the realization of related goals set on the basis of risk preference.

Large risk tolerance means that enterprises have strong risk-taking ability, and ordinary daily response measures can be taken for small risks within their tolerance range. Internal auditors can determine the risk tolerance according to the business environment, business norms and capital structure of the enterprise, and take different countermeasures when risk events come. In the market environment, enterprises will face various risks. Internal auditors should combine the internal and external environment of the enterprise, find out all the risks that will threaten the enterprise, and determine several most important risks from them. Then the tolerance of these key risks is quantitatively analyzed to determine the acceptable risk range.

What does tolerance mean in chemistry?

Solubility, at a certain temperature, the mass of a solid substance dissolved when it reaches saturation in 100g solvent, is called the solubility of the substance in the solvent. It should be noted here that if no solvent is specified, the solubility is usually the solubility of the substance in water. The unit of solubility is gram (or gram/100g solvent) rather than unit-free.

What does risk tolerance mean?

Risk tolerance, also known as risk tolerance, refers to the acceptability of differences in the realization of enterprise goals and the tolerance limit of differences in the realization of related goals set on the basis of risk preference.

Large risk tolerance means that enterprises have strong risk-taking ability, and ordinary daily response measures can be taken for small risks within their tolerance range. Internal auditors can determine the risk tolerance according to the business environment, business norms and capital structure of the enterprise, and take different countermeasures when risk events come. In the market environment, enterprises will face various risks. Internal auditors should combine the internal and external environment of the enterprise, find out all the risks that will threaten the enterprise, and determine several most important risks from them. Then the tolerance of these key risks is quantitatively analyzed to determine the acceptable risk range.

Basic principles of risk tolerance management:

1. Risk preference is determined by the board of directors, corporate governance structure and modern enterprise system. As the representative of all shareholders and the ultimate responsible person for bank safety, the board of directors should determine a unified risk preference according to the bank's operating conditions and development requirements, and then establish a clear and complete risk tolerance system, and constantly improve it to play an effective leading role in risk management.

2. Under the guidance of risk preference, the risk tolerance should be studied and formulated by the senior management according to the actual situation of business development and reported to the board of directors for approval. The design of risk tolerance system should strive to cover all business units and risk exposure scientifically and rigorously, and be consistent with risk preference and bank development strategy.

3. The determination of risk tolerance needs the support of quantitative analysis. Real and reliable data and models are the premise of making correct decisions. In this regard, commercial banks in China need to be further strengthened. If risk measurement is not accurate enough, risk management is not standardized enough, and internal control is not standardized enough, even if risk tolerance is set, it cannot be strictly and effectively implemented.

4. Risk preference is positioned on the strategic level, so it should have strong stability and consistency. Many advanced banks have adhered to the consistent risk preference for many years, formed a unique business style and management culture, and played a role in enhancing market reputation and brand value. In contrast, as long as the risk tolerance remains relatively stable, it can be adjusted according to changes in the market environment and operating conditions. Risk limits based on risk tolerance should be flexible. Risk preference is generally reviewed once every 2-3 years. Risk tolerance should be reviewed every year. After the risk limit is determined at the beginning of the year, necessary adjustments can be made according to the actual situation during the year.

5. In order to effectively implement risk preference and risk tolerance, banks should establish effective risk management systems and mechanisms. The risk tolerance system covers all aspects of banks, from governance structure, development strategy, business plan to specific financial products, business units and control indicators, so it is necessary to have a complete risk management system to promote and implement. In this sense, the implementation of risk tolerance management can promote banks to improve their risk management level more effectively.

What does risk tolerance mean?

Hello, classmate, I'm glad to answer your question!

The word you said belongs to the vocabulary of futures industry. Mastering the vocabulary of futures industry can make you feel at home in the study of futures industry. The translation and meaning of this word are as follows: investors' acceptance of uncertain factors in the negative change of portfolio value.

I hope the answer from Gao Dun Online School can help you solve the problem. For more questions about futures business, please submit them to Gao Dun enterprises.

Gao Dun wishes you a happy life!

What is the meaning of risk tolerance?

Risk tolerance is the maximum tolerance for risks. Everything has risks, but different people have different risk tolerance. Everyone's tolerance for risk has a certain limit. Beyond that limit, people will not engage in related affairs within the risk range.

Technically speaking, risk tolerance, also known as risk tolerance, refers to the acceptability of differences in the realization of enterprise goals and the tolerance limit of differences in the realization of related goals set on the basis of risk preference.

What does risk tolerance mean?

The word risk tolerance belongs to one of the core words of CMA. Learning the core words of CMA well will make you feel at home in your study. The meaning of this word is: investors' acceptance of uncertain factors in the negative change of portfolio value.

What does risk tolerance mean?

Hello, classmate, I'm glad to answer your question!

The word risk tolerance you mentioned belongs to FRM vocabulary. Mastering FRM vocabulary can help you learn FRM like a duck to water. The translation and meaning of this word are as follows: investors' acceptance of uncertain factors in negative changes in portfolio value.

I hope the answer from Gao Dun Online School can help you solve the problem. More accounting questions are welcome to be submitted to enterprises in Gao Dun.

Gao Dun wishes you a happy life!

What does risk tolerance mean?

Large risk tolerance means that enterprises have strong risk-taking ability, and ordinary daily response measures can be taken for small risks within their tolerance range. Internal auditors can determine the risk tolerance according to the business environment, business norms and capital structure of the enterprise, and take different countermeasures when risk events come. In the market environment, enterprises will face various risks. Internal auditors should combine the internal and external environment of the enterprise, find out all the risks that will threaten the enterprise, and determine several most important risks from them. Then the tolerance of these key risks is quantitatively analyzed to determine the acceptable risk range.

What does capital adequacy tolerance mean? Is it computable?

Capital adequacy ratio, also known as capital adequacy ratio, is a necessary capital ratio to ensure the normal operation and development of financial institutions such as banks. Financial management authorities in various countries generally control the capital adequacy ratio of commercial banks, with the aim of monitoring the ability of banks to resist risks.

Capital adequacy ratio has different calibers. The main ratios are the ratio of capital to deposits, the ratio of capital to liabilities, the ratio of capital to total assets and the ratio of capital to risky assets.

Calculation formula of capital adequacy ratio:

I. Calculation formula of capital adequacy ratio

1, capital adequacy ratio = new net capital/new weighted risk assets × 100.

In ...

New net capital = (net capital-insufficient provision for bad debts-long-term outstanding debt assets-investment assets with uncertain risks)

New weighted risk assets = weighted risk assets-long-term unsettled debt repayment assets ×50%- investment assets with uncertain risks × 10%.

or

2. Capital adequacy ratio = new net capital/new weighted risk assets × 100.

These include:

Net newly-increased capital = (net capital-insufficient provision for bad debts-long-term outstanding debt assets ×50%- sluggish loans ×40%)

New weighted risk assets = weighted risk assets-long-term unsold debt repayment assets ×50%- sluggish loans ×40%