Risikovorsorge

German

Etymology

Risiko (risk) +‎ Vorsorge (provision; precaution)

Pronunciation

  • IPA(key): /ˈʁiːzikoˌfoːɐ̯zɔʁɡə/
  • Hyphenation: Ri‧si‧ko‧vor‧sor‧ge

Noun

Risikovorsorge f (genitive Risikovorsorge, plural Risikovorsorgen)

  1. (finance, banking) risk provisioning, loan loss provisions (funds set aside by a bank or company to cover potential losses from credit defaults or other risks)
    Wegen der drohenden Rezession hat die Bank ihre Risikovorsorge massiv aufgestockt.
    Due to the looming recession, the bank has massively increased its risk provisioning.
    Die sinkende Risikovorsorge im letzten Quartal deutet auf eine stabilere Wirtschaftslage hin.
    The declining loan loss provisions in the last quarter point to a more stable economic situation.
Declension

Synonyms

  • Wertberichtigung (value adjustment)
  • Rückstellung (provision; reserve)

Coordinate terms

  • Eigenkapitalpuffer (capital buffer)
  • Ausfallrisiko (default risk)
  • Vorsorgeprinzip (precautionary principle)
  • Kreditausfall (credit default)

Further reading