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Managing money for an individual, business, or other organization

Loss or no loss - insurable

Profit or loss

Risks relating to the natural environment

Risks caused directly by human actions and behavior

Operational, financial, strategic risks that originate from within a business - these are under the business’s control

Market, regulatory, geopolitical risks that originate from outside a business - beyond the business’s control

The risk that an investor may not be able to reinvest the proceeds from a matured investment at the same rate of return as the original investment

Business transfers risk to an insurance company through an insurance policy

Business keeps part of the risk instead of transferring it entirely to an insurance company

A study of external factors that influence a business’s success - economic indicators and political factors

A study of internal factors that influence a business’s success - products, policies, and productivity

Strengths, weaknesses, opportunities, and threats

Internal factors that give a business a competitive advantage

Internal factors that put businesses at a disadvantage

External factors that a business can exploit to its advantage

External factors that could harm a business

Alternative course of action to be followed if a specific problem arises

Monitoring the opportunity for loss for a business

Comprehensive risk managment strategy that involves identifying all the risks that threaten a company, deciding which risks to focus on, and sharing that information with stakeholders

Money a company owes - suppliers

Money a company is owed - customers

The ability of a business to meet its financial obligations

Categorizing and analyzing accounts recievable based on the length of time invoices are outstanding

Money owed to a company that is at least 30 days past due

A fee charged by the government for the services they provide

Area of law that governs taxation

A tax paid on wealth collected after a person has died

A tax deduction on estate tax due to the dead person’s property passing directly to the surviving spouse

A tax paid on goods to discourage their consumption and fund public initiatives

Alcohol, tobacco, gasoline, luxury items

Included in the price of a product paid by the consumer

A tax paid on high-end non-essential goods and services

Percentage of the taxable income workers earn on the job

The assumption that taxpayers will comply with tax laws and accurately report their income and tax deductions fairly and honestly

Tax paid by workers so they may get benefits upon retirement

Charged to customers as a percentage of the price of the item being purchased

Tax paid based on the value of property such as land and buildings - main source of money for local governments

Tax paid on the transfer of property or money from one individual to another to prevent individuals from avoiding estate tax by giving away their assets before death

People with higher incomes pay a higher percentage of income in taxes

People with lower incomes pay a lower percentage of income in taxes

Everyone pays the same percentage of income in taxes

Two different taxes are levied on the same income

Collects various types of taxes

Money that is not taxed such as charitable donations

Income that is earned but not immediately taxed, often related to retirement

Subtract the expense from one’s taxable income

Offered by insurance companies that provides a stream of periodic payment to the owner for a specified period in exchange for a lump sum and can offer tax-deferred growth

A contract between a business and the insurer that covers a specific risk

Monthly payment the insured makes to the insurance company for the insurance plan

Money the insured is expected to pay in case the insured event occurs

Provides coverage for tenants to protect the tenant’s personal property

Short-term group coverage that can be obtained when one is between jobs

Provides a payout to beneficiaries in the event of the policyholder’s death

Insured for life and able to grow savings tax-free

Savings or investment account linked to a universal life insurance policy for tax-deferred growth

Provides coverage for a set period of time and only pays if you are insured at the time of death

Money paid to the beneficiaries upon the death of the policyholder

People named by the policyholder that recieve benefits

Provides financial protection including legal defense costs against claims or lawsuits arising from injuries or damages caused to other people or their property

Protects against claims related to bodily injury, property damage, and personal injury

Provides financial protection for certain types of professionals to reduce risk of financial loss to the individual and the company if a client sues them

Covers incidents that occur during the policy period, regardless of when the claim is filed

Covers claims filed during the policy period regardless of when the incident occurred - requires continuous coverage for incidents to be covered

Pays a percentage of employees’ salaries if they are unable to work for long periods of time due to illness or injury - nontaxable

Needed if you lose your independence due to physical or mental limitations following an accident or illness

Owner of a life insurance policy sells the policy to a third party for a lump sum cash payment

The amount of money an insurance policyholder is entitled to recieve if they decide to terminate their life insurance policy before it’s maturity or before death

A single, large payment made at once as opposed to smaller, periodic payments

A type of insurance company that is owned by its members

Aids its parent groups by reducing premium expenses, freeing up capital, and covering risks not commonly addressed by the greater insurance company

Legal owning and lending agreements between two parties

Information provided regarding an investment intrument issued that demonstrates whether it is debt or equity

Any activity where money is put at risk in the short-term for the purpose of creating a profit in the long-term

The increase of an amount of money due to interest earned over time or dividends paid

The date the principal amount is repaid to the securityholder

The amount of money that the issuer promises to repay the holder at maturity

The amount of interest the debtor pays the creditor periodically

Can be called back by the issuer before the maturity date

Cannot be called back by the issuer before the maturity date

A claim the lender has against an asset of the borrower to secure the repayment of a debt

Borrower pledges the lender collateral to guarantee that the borrowed money will be repaid

Money is borrowed simply by signing a promissory note to repay the borrowed money

The actual price that prevails in a market at any particular moment

The difference between the purchase price and selling price of an investment

The number of times stock is sold in a given period of time

The price at which an asset would sell in an auction setting

A portion of a company's profits distributed to shareholders

A percentage that indicates how frequently assets within an investment portfolio are bought or sold over a specific period

Earning interest upon interest

To estimate the number of years it takes for an investment to double in value, given a fixed annual rate of return - divide 72 by the annual rate of return

Lending securities

Debt security that represents a loan made by an investor to a borrower, typically a government or corporation

Investor pays less than the face value to purchase the bond

Investor pays more than the face value to purchase the bond

Bond issued by a government as a way to raise funds

Bond issued in the US by a foreign entity, denominated in US dollars

A bond issued in a currency other than the currency of the country in which is is issued - typically issued in international markets

Typically has a shorter maturity period, have fixed interest rates paid at regular intervals, can be secured or unsecured, tradeable, callable or non-callable

Short-term debt security issued by a government and doesn’t have periodic interst payments