- (1) Noun - The possibility of loss.(2) Noun - The uncertainty of whether events, expected or otherwise, will have an adverse impact. In this context, the adverse impact is usually a quantity of return ( income) or value at risk.(3) Noun - the compound estimate of the probability of, and the severity of, an adverse event. The amount of risk is the product of the probability of the adverse consequence and the potential severity of that adverse consequence.(4) Verb - to incur the possibility of loss, to create or accept the possibility of uncertain returns, or to create or accept volatility. American Banker Glossary————Often defined as the standard deviation of the return on total investment. Degree of uncertainty of return on an asset. In context of asset pricing theory . Bloomberg Financial DictionarySee: systematic risk. Bloomberg Financial Dictionary————1- The possibility of loss. 2 - The dollar difference between the current price and the price at which the liquidation of open positions would occur. 3- The portion of the performance bond requirement associated with the likely worst case change in value from one day to the next. Chicago Mercantile Exchange Glossary————Risk is the probability that the actual return of an investment will be different from the expected return. Higher the risk, higher will be the probability of gain or loss on the investment. London Stock Exchange Glossary
* * *▪ I. risk risk 1 [rɪsk] noun1. [countable, uncountable] the possibility that something may be lost, harmed, or damaged, or that something bad, unpleasant, or dangerous may happen:
• If you're considering starting a business, think carefully about the risks involved.risk of
• If your cheque book is lost or stolen, let your bank know immediately in order to reduce the risk of fraud on your account.
• This is one high-technology venture that is fairly low in financial risk.risk that
• There is always a risk that the supplier will go out of business before the order is delivered.ˈdownside ˌrisk [countable, uncountable] FINANCEthe greatest amount of money that might be lost by making a particular investment, doing a particular deal etc:
• You can reduce the downside risk considerably by using futures and options.2. [countable, uncountable] FINANCE the possibility that the value of an asset may go up or down on the stockmarket:
• There is always some risk with any kind of investment.
• Fund managers have the resources and time to make judgments on which non-rated bonds are worth the risk.ˈcurrency ˌrisk [countable, uncountable] FINANCEthe danger that changes in a currency's value may affect the value of investments or of a company's exports:
• These countries don't take a currency risk when buying US securities because their major export, oil, is priced in US dollars.
• There is a range of futures, swaps and currency options to hedge against (= try not to be affected by ) currency risk.exˈchange ˌrisk also ˌforeign exˈchange ˌrisk noun [countable, uncountable] FINANCEthe possibility of making a loss on a sale, deal etc because of changes in the value of one currency in relation to another:
• Most exporters would like to avoid exchange risk by invoicing in their own currency.inˈflation ˌrisk [countable, uncountable] FINANCEthe risk that inflation will increase:
• Some analysts believe the inflation risk is worth taking in an effort to jump-start the economy.ˈinterest-rate ˌrisk [countable, uncountable] FINANCEthe possibility that an increase in the rate of interest will cause the price of stocks, shares etc to decrease:
• Investors must also worry about interest-rate risk. If interest rates shoot up, stocks and bonds usually fall in price.ˈinventory ˌrisk [countable, uncountable] FINANCEthe possibility that something such as a price change will cause the value of an inventory (= the materials and goods in factories and shops) to decreaseliˈquidity ˌrisk [countable, uncountable] FINANCEthe risk that you will not be able to buy or sell a security fast enough or in large enough quantities, at the price you wantˈmarket ˌrisk [countable, uncountable] FINANCEanother name for systematic riskpoˈlitical ˌrisk [countable, uncountable] FINANCEthe risk that the value of an investment may be affected by something that a government does, for example changing a tax law:
• People associate greater political risk with offshore deposits.speˌcific ˈrisk [countable, uncountable] FINANCEanother name for unsystematic riskˌsystematic ˈrisk [countable, uncountable]1. FINANCE the risk of investing in a specific type of investment such as shares, bonds etc; = market risk:
• These shares have low systematic risks and are expected to earn a return of 10%.2. ECONOMICS a risk that affects the whole of an industry, rather than just one companyˈunderwriting ˌrisk [countable, uncountable]when an investment banker buys all of the new shares that a company is selling, the risk that the price will go down before they are sold, or that investors will not want to buy themˌunsystematic ˈrisk [countable, uncountable]1. FINANCE a risk caused by something that affects only one or a few investments, not the whole of the market; = specific risk:
• Unsystematic risk can be avoided by holding a well-diversified portfolio (= variety of investments ) .2. ECONOMICS a risk that affects just one company or industry
• Many banks will not lend to high-risk borrowers.1. [countable, uncountable] the risk that a person or company will not pay back a loan or debt:
• The credit risk of each individual has to be assessed separately.2. [countable] a person or company judged according to the risk involved in lending them money:
• borrowers who were previously shown to be bad credit risksthe risk that a foreign government will not pay back a loan or keep a promise to enter into a business deal4. [countable] INSURANCE the possibility of a particular type of damage against which you are insured:
• Check in detail the risks that are covered by your policy.5. [countable] FINANCE INSURANCE a person or business judged according to the risk involved in providing them with insurance or lending them money:
• Drivers under 21 are regarded as poor risks by insurance companies.
• People with previous heart attacks are considered to be higher insurance risks.actuˈarial ˌrisk [countable, uncountable] INSURANCE STATISTICSthe possibility that something that is covered by an insurance agreement will actually happen. Insurance companies have to calculate actuarial risks carefully in order to be sure of making a profit1. if goods are moved from one place to another at buyer's risk, the buyer must insure the goods while they are being moved2. LAW the risk run by someone buying something, for example that the goods are not good quality:
• Goods are offered at buyer's risk.ˈcarrier's ˌrisk [uncountable] INSURANCEif goods are moved from one place to another at the carrier's risk, any loss or damage must be paid for by the company that moves themcaˈtastrophe ˌrisk [countable, uncountable] INSURANCEthe possibility that insurance companies will suffer very large losses if there is a Catastrophe (= a terrible event that causes a lot of destruction)inˌsurable ˈrisk [countable, uncountable] INSURANCEa normal risk such as an accident or a fire for which an insurance company will provide insurance because it can calculate the chance of it happeningnon-inˌsurable ˈrisk [countable, uncountable] INSURANCEanother name for uninsurable riskˌowner's ˈrisk [uncountable] INSURANCEif goods are moved from one place to another at the owner's risk, the owner must insure the goods while they are being movedˈunderwriting ˌrisk [countable, uncountable] INSURANCEthe risk that an insurance company will have to give a customer money to cover loss or damageˌuninsurable ˈrisk [countable, uncountable] INSURANCEa risk for which an insurance company will not provide cover because it cannot calculate the chance of it happening6. run a risk to be in a situation where there is a risk of something bad happening to you:
• If you fail to pay your bill, you run the risk of having your electricity supply cut off.7. take a risk to decide to do something even though you know it may have bad results:
• The choice facing the Government is whether or not to take a risk with inflation by reducing interest rates.8. at risk if something is at risk, it is in a situation where it may be damaged or lost:
• We have to stop these rumours; the firm's reputation is at risk.
• Older workers are most at risk of experiencing long-term unemployment.
• Your home is at risk (= you might lose it ) if you do not keep up repayments on the loan.9. at your own risk if you do something at your own risk, you do it when you understand the possible dangers and have been warned about them:
• All tours are undertaken at the visitor's own risk.[m0] ▪ II. risk risk 2 verb [transitive]1. to put something in a situation in which it could be lost, destroyed, or harmed:risk something on something
• You'd be crazy to risk your money on an investment like that!
• They risked their financial future on a brand-new business.2. to get into a situation where something unpleasant may happen to you:
• The workers risked dismissal without compensation if the strike continued.3. to do something that you know may have dangerous or unpleasant results:risk doing something
• No bank would risk giving them a loan.
* * *The probability that an investment or venture will make a loss or not make the returns expected. This probability can be measured. There are many different types of risk including basis risk, country or sovereign risk, credit risk, currency risk, economic risk, inflation risk, liquidity risk, market or systematic risk, political risk, settlement risk, systemic risk and translation risk.
* * *Ⅰ.risk UK US /rɪsk/ noun► [U] the possibility that something bad or dangerous will happen: »
Heavy reliance upon one client is not without risk when building up a practice.increase/reduce the risk of sth »
The agency is undertaking an urgent program to reduce the risk of runway collision.► [C] something bad that might happen: »
Our biggest risk is identity theft.»
I think that people who come here illegally know the risks.► [C or U] FINANCE the possibility that an investment will lose money: »
Before you invest in the Fund you should carefully evaluate the risks.»
This stock is loaded with risk.»
high/low/medium riskcarry (a) risk »
To invest in just one stock carries a high risk.offset (a) risk »
Banks carry out several transactions to offset risk.► [C or U] INSURANCE the possibility that something will be harmed, damaged, or lost: »
high/low riskinsure against a risk »
Anyone who wants to insure against the risk of illness or accident can do so at a price.► [C] INSURANCE, BANKING a person or business that may or may not be safe to insure or lend money to: a bad/good risk »
In terms of insurance eligibility, the couple constituted a bad risk.● at risk — Cf. at risk● at your own risk — Cf. at your own risk● bear a risk — Cf. bear a risk● put sb/sth at risk — Cf. put sth at risk● run a risk — Cf. run a risk● take a risk — Cf. take a risk→ See also ACTUARIAL RISK(Cf. ↑actuarial risk), AGAINST ALL RISKS(Cf. ↑against all risks), ALL-RISKS(Cf. ↑all-risks), ASSIGNED RISK(Cf. ↑assigned risk), AT-RISK(Cf. ↑at-risk), BUYER'S RISK(Cf. ↑buyer's risk), CALCULATED RISK(Cf. ↑calculated risk), CARRIER'S RISK(Cf. ↑carrier's risk), COUNTRY RISK(Cf. ↑country risk), CREDIT RISK(Cf. ↑credit risk), CURRENCY RISK(Cf. ↑currency risk), DOWNSIDE RISK(Cf. ↑downside risk), EXCHANGE RISK(Cf. ↑exchange risk), EXECUTION RISK(Cf. ↑execution risk), FOREIGN CURRENCY RISK(Cf. ↑foreign currency risk), GLOBAL RISK(Cf. ↑global risk), HIGH-RISK(Cf. ↑high-risk), INFLATION RISK(Cf. ↑inflation risk), INSURANCE RISK(Cf. ↑insurance risk), INVENTORY RISK(Cf. ↑inventory risk), INVESTMENT RISK(Cf. ↑investment risk), LIQUIDITY RISK(Cf. ↑liquidity risk), LOW-RISK(Cf. ↑low-risk), MARKET LIQUIDITY RISK(Cf. ↑market liquidity risk), OWNER'S RISK(Cf. ↑owner's risk), SOVEREIGN RISK(Cf. ↑sovereign risk), SYSTEMATIC RISK(Cf. ↑systematic risk), UNINSURABLE RISK(Cf. ↑uninsurable risk)Ⅱ.risk UK US /rɪsk/ verb [T]► to put something in a situation where it could be lost or damaged: »
Carol can get a better return on her investments without risking her capital.»
The region was going through a huge economic downturn and it didn't want to risk its trade ties with the USrisk sth on sth »
Bonds are attractive to conservative investors who don't want to risk everything on the stock market.► to get into a situation or do something that might have a bad result: »
The United States is becoming dangerously dependent on foreign investors to the point that it is risking a financial crisis.risk doing sth »
If you're not exploiting the opportunities of e-commerce, you could risk going bankrupt.
Financial and business terms. 2012.