"tail risk" meaning in English

{
  "etymology_text": "From statistics, referring to the end-portion (“tail”) of distribution curves, in finance usually the left (“loss”) tail.",
  "forms": [
    {
      "form": "tail risks",
      "tags": [
        "plural"
      ]
    }
  ],
  "head_templates": [
    {
      "args": {
        "1": "~"
      },
      "expansion": "tail risk (countable and uncountable, plural tail risks)",
      "name": "en-noun"
    }
  ],
  "lang": "English",
  "lang_code": "en",
  "pos": "noun",
  "senses": [
    {
      "categories": [
        {
          "kind": "other",
          "name": "English entries with incorrect language header",
          "parents": [],
          "source": "w"
        },
        {
          "kind": "other",
          "name": "Pages with 1 entry",
          "parents": [],
          "source": "w"
        },
        {
          "kind": "other",
          "name": "Pages with entries",
          "parents": [],
          "source": "w"
        },
        {
          "kind": "other",
          "langcode": "en",
          "name": "Finance",
          "orig": "en:Finance",
          "parents": [],
          "source": "w"
        }
      ],
      "examples": [
        {
          "bold_text_offsets": [
            [
              59,
              68
            ]
          ],
          "ref": "2004, Srichander Ramaswamy, Managing Credit Risk in Corporate Bond Portfolios, →ISBN, page 123:",
          "text": "The advantage of performing a simulation is that different tail risk measures can be computed from the simulated loss distribution.",
          "type": "quote"
        },
        {
          "bold_text_offsets": [
            [
              13,
              22
            ]
          ],
          "ref": "2011, International Monetary Fund, Capital Regulation and Tail Risk, →ISBN, page 4:",
          "text": "Hence, under tail risk, excess risk-shifting incentives of bank shareholders may exist almost independently of the level of initial or required capital.",
          "type": "quote"
        },
        {
          "bold_text_offsets": [
            [
              38,
              47
            ]
          ],
          "ref": "2012 April 20, Alan Gerstein, “The Challenges in Hedging Tail Risk”, in The New York Times:",
          "text": "Given this backdrop and these fears, “tail risk” hedging, or protecting investment portfolios against extreme negative moves in the market, has been a frequent topic of conversation among market participants.",
          "type": "quote"
        },
        {
          "bold_text_offsets": [
            [
              60,
              69
            ],
            [
              182,
              191
            ]
          ],
          "ref": "2013, Paul Karamjeet, Managing Extreme Financial Risk, →ISBN, page xxii:",
          "text": "Not making this distinction between normal risk and extreme tail risk is often the reason institutions lack clear, highly focused goals and governance policies for the management of tail risk.",
          "type": "quote"
        },
        {
          "bold_text_offsets": [
            [
              51,
              60
            ]
          ],
          "ref": "2025 November 14, Kevin Roose, Casey Newton, quoting Dean Ball, “Data Centers in Space + A.I. Policy on the Right + A Gemini History Mystery”, in The New York Times, New York, N.Y.: The New York Times Company, →ISSN, →OCLC:",
          "text": "Because really, if we can’t deal with catastrophic tail risk, then we do not have a legitimate government.",
          "type": "quote"
        }
      ],
      "glosses": [
        "The probability that the value of something will fall more than three standard deviations (-3σ) below the mean; an extreme risk."
      ],
      "id": "en-tail_risk-en-noun-4YZeBtUA",
      "links": [
        [
          "finance",
          "finance#Noun"
        ],
        [
          "probability",
          "probability"
        ],
        [
          "standard deviation",
          "standard deviation"
        ],
        [
          "mean",
          "mean"
        ],
        [
          "risk",
          "risk"
        ]
      ],
      "raw_glosses": [
        "(chiefly finance) The probability that the value of something will fall more than three standard deviations (-3σ) below the mean; an extreme risk."
      ],
      "related": [
        {
          "english": "a rare and hard-to-predict event with major consequences",
          "translation": "a rare and hard-to-predict event with major consequences",
          "word": "black swan"
        },
        {
          "word": "long tail"
        }
      ],
      "synonyms": [
        {
          "word": "fat tail risk"
        }
      ],
      "tags": [
        "countable",
        "uncountable"
      ],
      "topics": [
        "business",
        "finance"
      ]
    }
  ],
  "word": "tail risk"
}

{
  "etymology_text": "From statistics, referring to the end-portion (“tail”) of distribution curves, in finance usually the left (“loss”) tail.",
  "forms": [
    {
      "form": "tail risks",
      "tags": [
        "plural"
      ]
    }
  ],
  "head_templates": [
    {
      "args": {
        "1": "~"
      },
      "expansion": "tail risk (countable and uncountable, plural tail risks)",
      "name": "en-noun"
    }
  ],
  "lang": "English",
  "lang_code": "en",
  "pos": "noun",
  "related": [
    {
      "english": "a rare and hard-to-predict event with major consequences",
      "translation": "a rare and hard-to-predict event with major consequences",
      "word": "black swan"
    },
    {
      "word": "long tail"
    }
  ],
  "senses": [
    {
      "categories": [
        "English countable nouns",
        "English entries with incorrect language header",
        "English lemmas",
        "English multiword terms",
        "English nouns",
        "English terms with quotations",
        "English uncountable nouns",
        "Pages with 1 entry",
        "Pages with entries",
        "en:Finance"
      ],
      "examples": [
        {
          "bold_text_offsets": [
            [
              59,
              68
            ]
          ],
          "ref": "2004, Srichander Ramaswamy, Managing Credit Risk in Corporate Bond Portfolios, →ISBN, page 123:",
          "text": "The advantage of performing a simulation is that different tail risk measures can be computed from the simulated loss distribution.",
          "type": "quote"
        },
        {
          "bold_text_offsets": [
            [
              13,
              22
            ]
          ],
          "ref": "2011, International Monetary Fund, Capital Regulation and Tail Risk, →ISBN, page 4:",
          "text": "Hence, under tail risk, excess risk-shifting incentives of bank shareholders may exist almost independently of the level of initial or required capital.",
          "type": "quote"
        },
        {
          "bold_text_offsets": [
            [
              38,
              47
            ]
          ],
          "ref": "2012 April 20, Alan Gerstein, “The Challenges in Hedging Tail Risk”, in The New York Times:",
          "text": "Given this backdrop and these fears, “tail risk” hedging, or protecting investment portfolios against extreme negative moves in the market, has been a frequent topic of conversation among market participants.",
          "type": "quote"
        },
        {
          "bold_text_offsets": [
            [
              60,
              69
            ],
            [
              182,
              191
            ]
          ],
          "ref": "2013, Paul Karamjeet, Managing Extreme Financial Risk, →ISBN, page xxii:",
          "text": "Not making this distinction between normal risk and extreme tail risk is often the reason institutions lack clear, highly focused goals and governance policies for the management of tail risk.",
          "type": "quote"
        },
        {
          "bold_text_offsets": [
            [
              51,
              60
            ]
          ],
          "ref": "2025 November 14, Kevin Roose, Casey Newton, quoting Dean Ball, “Data Centers in Space + A.I. Policy on the Right + A Gemini History Mystery”, in The New York Times, New York, N.Y.: The New York Times Company, →ISSN, →OCLC:",
          "text": "Because really, if we can’t deal with catastrophic tail risk, then we do not have a legitimate government.",
          "type": "quote"
        }
      ],
      "glosses": [
        "The probability that the value of something will fall more than three standard deviations (-3σ) below the mean; an extreme risk."
      ],
      "links": [
        [
          "finance",
          "finance#Noun"
        ],
        [
          "probability",
          "probability"
        ],
        [
          "standard deviation",
          "standard deviation"
        ],
        [
          "mean",
          "mean"
        ],
        [
          "risk",
          "risk"
        ]
      ],
      "raw_glosses": [
        "(chiefly finance) The probability that the value of something will fall more than three standard deviations (-3σ) below the mean; an extreme risk."
      ],
      "synonyms": [
        {
          "word": "fat tail risk"
        }
      ],
      "tags": [
        "countable",
        "uncountable"
      ],
      "topics": [
        "business",
        "finance"
      ]
    }
  ],
  "word": "tail risk"
}