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risk |
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riskIn economics and finance, an allowance for the hazard (risk) in an investment or loan. Default risk refers to the chance that a borrower will not repay a loan. If a banker believes that a borrower may not repay a loan, the banker will charge the true interest plus a premium for the default risk, the premium depending on the degree of presumed risk. All stock investment carries an implicit risk since there is no guarantee of return on investment. Trading or variability risk is the amount that the return may vary, up or down, from the expected return on investment. risk The expectation of loss. It is a function of the probability and the consequences of harm. See risk assessment.risk at risk a. Social welfare vulnerable to personal damage, to the extent that a welfare agency might take protective responsibility risk [risk] (engineering) The potential realization of undesirable consequences from hazards arising from a possible event. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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