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.
|Overview: Risk Acceptance|
|Definition||Choosing to assume a risk, typically because its associated risk-reward profile is attractive and within your risk tolerance.|