Enterprise risk management (ERM) is a holistic approach to identifying, defining, quantifying, and...
return on risk-adjusted capital (RORAC)
A target return on equity measure in which the denominator is adjusted depending on the risk associated with the instrument or project.
Additional Information
This is a term used in the financial services industry and in enterprise risk management (ERM). In the insurance industry, risk-adjusted return on capital (RAROC) is the term commonly used.
Related Terms
