Cyber*School

Rights of shareholders to ask questions about to the company, the operating results and to the Executive Board at the General Meeting. In exceptional cases, the Board may refuse to provide information.

Right of shareholders to make proposals at the General Meeting.

It indicates the extent of the risks, a credit institution is able to take due to its equity base. It is used as a incurred risk buffer for emerging risks. Several scenarios striking expected risks: going concern, stress case or liquidation

Entering into banking risks such as interest rate risk, currency risk, liquidity risk and credit risk.

Risk levels are a measure for determining the risk of an investment

Imputed risk premium to cover the expected credit losses.

Provides opportunities and risks of an investment in graphical form.

Hedging

options strategy, where a out of the money call is purchased and a out of the money put is sold (or vice versa)smiles resp. skews are usually traded by means of risk reversals, the quotes usually refer to options with a delta of 25 %; e.g.:the quotation of a risk reversal is: calls are over 0,5meaning: the volatility of calls delta 25% (resp. puts delta 75%) is traded 0,5% higher than the volatility of puts with delta 25% (resp. calls delta 75%)

A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio. Diversification strives to smooth out unsystematic risk events in a portfolio so that the positive performance of some investments will neutralize the negative performance of others. Therefore, the benefits of diversification will hold only if the securities in the portfolio are not perfectly correlated.

Interest income by investing in so-called risk-free assets. (Debt securities) eg german federal loans.

The theoretical rate of return attributed to an investment with zero risk. The risk-free rate represents the interest on an investor's money that he or she would expect from an absolutely risk-free investment over a specified period of time. In practice, however, the risk-free rate does not technically exist; even the safest investments carry a very small amount of risk. Thus, investors commonly use the interest rate on a three-month U.S. Treasury bill as a proxy for the risk-free rate because short-term government-issued securities have virtually zero risk of default.

abbr. Return on Capital Employed

abbr. Rest-of-Day

abbr. Return on equity

abbr. Return on Investment

medium- or long-term credit with an agreement, that the interest rate is adjusted to a stipulated reference rate (e.g. EURIBOR or LIBOR)

interest rate swap with an irregular nominal structure. The nominal structure is fixed at the beginning.

A calculation method for a reference rate that allows the controllability of the interest rate and margin results in transactions without direct repricing and maturity structure (baw). Adjustment is calculated with a time delay from the average of the past months or years.

abbr. Return On Risk Adjusted Capital