Rewarded risk: Difference between revisions
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imported>Doug Williamson m (Spacing and category added) |
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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. | ||
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. | ||
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. | ||
== See also == | == See also == | ||
* [[Return]] | * [[Return]] | ||
* [[Unrewarded risk]] | * [[Unrewarded risk]] | ||
[[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.
