Glossary

Operating cash flow is the underwriting cash flow plus investment income, and plus or minus other income statement cash flows.

Operating earnings refers to net income from continuing operations, excluding realized investment gains.

Operational capital is capital required to finance business activities.

Operational risk is the risk of human, process, system, or technological failure as well as risks from external events (i.e., event risk).

Operational risk financing securities (ORFS) refer to a debt or credit instrument designed to provide liquidity or income to offset changes in cash flows resulting from an occurrence relating to an entity's operations.

Operational risk management (ORM) is the application of the risk management process to operational risk.

Operator refers to the company that has the legal right, either by ownership or by virtue of a mineral lease, to produce oil and gas from a particular well.

Operators extra expense (OEE) is a specialized policy available to oil or gas well operators that covers the cost of regaining control of a wild well.

Opt-out lawsuits are a type of lawsuit in which an individual plaintiff "opts out" of the larger securities class action lawsuit that is also being brought against the same corporate defendant.

Optimization is the formal process by which decisions are made under conditions of uncertainty.