Expected Loss in Financial Formulas

Expected Loss represents the anticipated financial loss resulting from a specific risk, calculated as the product of the loss severity, probability of default, and exposure at default. And is denoted by EL.

Formulas to find Expected Loss in Financial

fxExpected LossGo

List of variables in Financial formulas

fx Default Probability Go

fx Loss Severity given Default Go

FAQ

What is the Expected Loss?

Expected Loss represents the anticipated financial loss resulting from a specific risk, calculated as the product of the loss severity, probability of default, and exposure at default.

Can the Expected Loss be negative?

{YesorNo}, the Expected Loss, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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