die Risikovorsorge
Translation
risk provision, loan loss provision, risk precaution
Examples
Die Bank bildet eine Risikovorsorge.
The bank is creating a risk provision.
Die Risikovorsorge schützt vor Kreditausfällen.
The risk provision protects against loan defaults.
Grammar Patterns
to form a risk provision ((for sth.)) eine Risikovorsorge ((für et4)) bilden The bank must form a high risk provision for loans.
Similar Words
provision, reserve, safeguard
Etymology
Composed of `Risiko` (risk) and `Vorsorge` (precaution, provision). It literally means 'risk pre-care'.
Memory Tips
Think of it as making a 'provision' for a future 'risk'. This term is very common in banking and finance.