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Risk acceptance is the assumption of a risk, typically because its risk-reward profile is attractive and within your risk tolerance. In general, it is impossible to make gains in business or life without taking risks. As such, risk acceptance is a common risk treatment. The following are a few examples:
1. InvestingMost investments involve some level of risk.2. InsuranceThe entire insurance industry is based on assuming risk for a fee.3. DerivativesDerivatives are contracts that derive their value from an underlying entity such as exchange rates. They are often used to transfer risk between businesses for a fee.4. ProjectsProjects are an investment that a business makes to achieve its goals such as launching new products or services. Projects involve risks such as the potential for cost overruns.
5. Business EquityAny equity you own in a business is typically at risk. Such risks are accepted in return for potential profits from the business.|
Type | | Definition | Choosing to assume a risk, typically because its associated risk-reward profile is attractive and within your risk tolerance. | Risk Treatments | |
Project Management
This is the complete list of articles we have written about project management.
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A list of common project risks.
A list of basic project management techniques.
A definition of workaround with examples.
A list of project branding techniques.
An overview of project stakeholder management with examples.
A definition of action plan with examples.
The primary types of cost overrun.
The definition of document control with examples.
A guide to project oversight.
A definition of design driven development with examples.
A list of common project risks.
A list of common project stakeholders.
A list of common business risks.
The difference between a risk and an issue.
The five things that can be done about risk.
The definition of secondary risk with examples.
A guide to creating a risk register with an example.
A definition of risk perception with examples.
The common types of implementation.
A reasonably complete guide to project risk management.
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