ExampleA business unit decides that there is a 70% chance that a $400,000 project will fail. If the project succeeds it will save the firm at least $10 million. The business unit decides to take the calculated risk of proceeding with the project. Every effort is made to reduce risk but the team realizes that failure is a possibility.
|Overview: Calculated Risk|
An action or strategy that is taken after careful consideration of the risks involved.