Shortfall risk: the probability that an amount falls below a specific threshold level.
Probability of ruin: related to shortfall risk; the percentile at which point (threshold level) capital is completely used up; the lowest acceptable probability of ruin is stated and from there, an organization can determine its economic capital.
Value at risk (VAR): the maximum loss to occur at a given level of probability, given a specific period of time and normal market conditions.
Tail events: unlikely and extreme events with big losses.
