Description
Risk, in the ordinary sense, is what you face if you invest in company stocks. If the stock price falls, you risk losing the value of your investment. In everyday conversation, the concept of risk is generally expressed in terms of hazards to be avoided whenever possible.
For businesses, however, risk has more ambiguous and complex associations. Some of these are negative, because risky activities can lead to financial loss and the ruin of large enterprises, especially if the activities are not properly controlled. But risk has a positive dimension as well. Those who did not invest in stocks over the last 10 years have missed out on some incredible returns. Every executive knows that running a business involves the balancing of risk with the potential for reward. While the business definition of risk is not precise, the term is used in two distinct senses: risk as opportunity and risk as hazard.
ISBN:9781899332076
