Retail and Rewarded risk: Difference between pages
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Rewarded and unrewarded risk can be a useful way to analyse risks. | |||
It can indicate whether a particular risk is a legitimate risk for the organisation (and consistent with the organisation’s strategic plan) or not. | |||
An example of a rewarded risk is a capital investment decision, such as acquiring a business or a new machine, launching a new product and so on. | |||
==See also== | Such an investment will be made because there is a reasonable expectation of an acceptable net positive return within the organisation's strategic plan, and hence an expectation of an increase in shareholders' wealth. | ||
*[[ | |||
*[[ | == See also == | ||
*[[ | * [[Return]] | ||
*[[ | * [[Risk appetite]] | ||
*[[ | * [[Shareholder value]] | ||
* [[Strategic analysis]] | |||
* [[Unrewarded risk]] | |||
[[Category:Financial_risk_management]] | |||
Revision as of 08:52, 14 July 2016
Rewarded and unrewarded risk can be a useful way to analyse risks.
It can indicate whether a particular risk is a legitimate risk for the organisation (and consistent with the organisation’s strategic plan) or not.
An example of a rewarded risk is a capital investment decision, such as acquiring a business or a new machine, launching a new product and so on.
Such an investment will be made because there is a reasonable expectation of an acceptable net positive return within the organisation's strategic plan, and hence an expectation of an increase in shareholders' wealth.
