Consortium members and Rewarded risk: Difference between pages
From ACT Wiki
(Difference between pages)
imported>Doug Williamson (Update header) |
imported>Doug Williamson (Add links.) |
||
| Line 1: | Line 1: | ||
'' | 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. | |||
== See also == | == See also == | ||
* [[ | * [[Aggressive]] | ||
* [[ | * [[Conservative]] | ||
* [[Return]] | |||
* [[Risk appetite]] | |||
* [[Shareholder value]] | |||
* [[Strategic analysis]] | |||
* [[Unrewarded risk]] | |||
[[Category: | [[Category:Financial_risk_management]] | ||
Latest revision as of 09:10, 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.
