Difference between revisions of "Rewarded risk"

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A rewarded risk is one which is associated with an expected benefit for the party accepting the risk.   
 
A rewarded risk is one which is associated with an expected benefit for the party accepting the risk.   
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For example a greater net return (or a smaller net cost) for the party accepting the risk.   
 
For example a greater net return (or a smaller net cost) for the party accepting the risk.   
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So it may be rational - depending on the size and likelihood of the expected benefit, and the organisation's risk appetite and policy - to accept a rewarded risk.
 
So it may be rational - depending on the size and likelihood of the expected benefit, and the organisation's risk appetite and policy - to accept a rewarded risk.
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== See also ==
 
== See also ==
 
* [[Return]]
 
* [[Return]]
 
* [[Unrewarded risk]]
 
* [[Unrewarded risk]]
 
  
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[[Category:Financial_risk_management]]

Revision as of 14:17, 20 August 2013

A rewarded risk is one which is associated with an expected benefit for the party accepting the risk.

For example a greater net return (or a smaller net cost) for the party accepting the risk.

So it may be rational - depending on the size and likelihood of the expected benefit, and the organisation's risk appetite and policy - to accept a rewarded risk.


See also