Difference between revisions of "Risk"

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[[Risk]] is any chance that some event will occur. Commonly, ''risk'' is associated with unfavorable events, or [[threat]]s. Favorable ''risks'' are called [[opportunity|opportunities]].
 
[[Risk]] is any chance that some event will occur. Commonly, ''risk'' is associated with unfavorable events, or [[threat]]s. Favorable ''risks'' are called [[opportunity|opportunities]].
 
In [[financial management]], ''risk'' is the chance that an investment will provide a low or negative return.
 
  
  

Revision as of 23:38, 1 November 2019

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.

Related concepts

Related lectures