Difference between revisions of "Risk"
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According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
:[[Risk]]. The chance that some unfavorable event will occur. In a [[financial market]] context, the chance that an investment will provide a low or negative return. | :[[Risk]]. The chance that some unfavorable event will occur. In a [[financial market]] context, the chance that an investment will provide a low or negative return. | ||
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| + | According to [[Management by Robbins and Coulter (14th edition)]], | ||
| + | :[[Risk]]. A situation in which a decision maker is able to estimate the likelihood of certain outcomes. | ||
==Related concepts== | ==Related concepts== | ||
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*[[Introduction to Financial Management]]. | *[[Introduction to Financial Management]]. | ||
| − | [[Category: Financial Management]][[Category: Articles]] | + | [[Category: Management]][[Category: Financial Management]][[Category: Articles]] |
Revision as of 18:43, 31 May 2020
Risk is any chance that some event will occur. Commonly, risk is associated with unfavorable events, or threats. Favorable risks are called opportunities.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Risk. The chance that some unfavorable event will occur. In a financial market context, the chance that an investment will provide a low or negative return.
According to Management by Robbins and Coulter (14th edition),
- Risk. A situation in which a decision maker is able to estimate the likelihood of certain outcomes.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
