C4 risk, according to the provided reference, is Business Risk within the context of a life risk-based capital formula. It's one component among others (like asset risk, insurance risk, and interest rate risk) used to assess the overall financial risk profile.
Here's a breakdown:
- C0 - Asset Risk - Affiliates: Risk associated with assets linked to affiliated companies.
- C1 - Asset Risk - Other: Risk associated with other assets.
- C2 - Insurance Risk: Risk related to insurance policies and liabilities.
- C3 - Interest Rate Risk, Health Credit Risk, and Market Risk: Risks tied to interest rate fluctuations, health credit exposures, and market volatility.
- C4 - Business Risk: This is the specific risk we're addressing.
While the reference explicitly identifies C4 as "Business Risk," it doesn't elaborate on the specific elements that constitute business risk.
