Definition, Meaning & Synonyms
estimated-maximum-loss
Noun
ˈɛstɪˌmeɪtɪd ˈmæksɪməm lɔs
Definition
The estimated maximum loss refers to the highest potential loss an entity anticipates it might incur under specific conditions or during certain events.
Examples
- After evaluating the risks, the company calculated an estimated maximum loss of $2 million in the event of a data breach.
- The investors were provided with an estimated maximum loss to understand the worst-case impacts on their portfolios.
Meaning
It is a financial term used to describe the worst-case scenario in terms of financial loss, often utilized in risk management and financial assessments.
Synonyms
- potential loss
- maximum expected loss
- worst-case loss
