Measurable possibility of losing or not gaining value. Risk is differentiated from uncertainty, which is not measurable. Various types of risk include actuarial risk, exchange risk, inflation risk, interest rate risk, inventory risk, liquidity risk, political risk, repayment (credit) risk, risk of principal, systemic risk, underwriting risk, and unsystemic risk.
An essential concept in investment management suggesting that the potential return on any investment rises with an increase in risk. In practice, higher-risk investments generally offer greater potential returns, and vice versa.
An unsecured debenture is a type of debt instrument that is not backed by any specific collateral, relying instead on the creditworthiness and reputation of the issuer.
An entrepreneurial business undertaking involving a degree of risk, where capital is exposed to potential loss in pursuit of profit.
