Below-target-risk (BTR)

Term · Insurance and risk management · MLC-T-INS-000543

A downside risk measure that counts only outcomes falling short of a chosen target return and ignores results above it, for example the probability of missing the target or the expected size of the shortfall. Investors and insurers use it in asset liability matching, where the target is the return needed to meet liabilities. It differs from variance, which also penalizes outcomes that beat the target.

Table 1. Record
Identifier	MLC-T-INS-000543
Field	Insurance and risk management
Abbreviation	BTR

Record as JSON

{
  "id": "MLC-T-INS-000543",
  "term": "Below-target-risk (BTR)",
  "field": "Insurance and risk management",
  "definition": "A downside risk measure that counts only outcomes falling short of a chosen target return and ignores results above it, for example the probability of missing the target or the expected size of the shortfall. Investors and insurers use it in asset liability matching, where the target is the return needed to meet liabilities. It differs from variance, which also penalizes outcomes that beat the target.",
  "abbreviation": "BTR",
  "url": "https://mlchart.com/terminology/insurance/below-target-risk-btr/"
}

Record 298 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.