Risk

Risk is the chance that an investment's actual return will be different than expected. This includes the possibility of losing some or all of the original investment.

Risk

Risk is the chance that an investment's actual return will be different than expected. This includes the possibility of losing some or all of the original investment.

 


Explanation of Risk

Risk is usually measured by calculating the standard deviation of the historical or average returns of a specific investment.

Many companies now allocate large amounts of money and time in developing risk management strategies to help manage risks associated with their business and investment dealings. A key component of the risk management process is risk assessment, which involves the determination of the risks surrounding a business or investment.


Related Terms