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John Spacey, November 27, 2015 updated on March 17, 2021
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.
Project Management
This is the complete list of articles we have written about project management.
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A guide to project risk.
A list of basic project management techniques.
A definition of workaround with examples.
A list of project branding techniques.
A definition 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 four 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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