Suggest a new Definition

    Proposed definitions will be considered for inclusion in the Economictimes.com

    Economy

    What is 'Risk'


    Definition: Risk implies future uncertainty about deviation from expected earnings or expected outcome. Risk measures the uncertainty that an investor is willing to take to realize a gain from an investment.

    Description: Risks are of different types and originate from different situations. We have liquidity risk, sovereign risk, insurance risk, business risk, default risk, etc. Various risks originate due to the uncertainty arising out of various factors that influence an investment or a situation.

    Related News

    • REC, PFC shares rise 4% on RBI's plan to ease stricter infrastructure funding normsShares of PFC and REC rose over 4% on BSE as the RBI considers a staggered approach to increasing provisioning requirements for project financing. This move aims to mitigate the impact on lenders and avoid making projects unviable.
    • India ranks 31st in JLL's Global Real Estate Transparency IndexGlobal property consultant JLL has announced that India's top real estate markets have entered the 'transparent' zone for the first time, driven by the institutionalisation of commercial assets and improvements in data access. This development was highlighted in JLL's 'Global Real Estate Transparency Index, 2024'. With a composite score of 2.44, India now ranks 31st among 89 countries.
    • Explained: What is the difference between a fixed deposit and a fixed maturity plan mutual fund?Whether you choose Fixed Deposits (FDs) or Fixed Maturity Plans (FMPs) hinges on your risk tolerance, tax situation, and investment timeframe. FDs are ideal if you prioritize safety and assured returns. If you're comfortable with some risk for potentially higher returns after taxes, particularly over the long haul, FMPs could be a more suitable choice.
    • Monkey Pox becomes a global threat: Is India at risk and what is the current status?India is monitoring the Mpox situation closely after the World Health Organization's declaration of the disease as a public health emergency. Despite the global rise in cases, particularly in Africa and Europe, Indian officials report a low risk of an outbreak. The government has enhanced surveillance and testing measures, with no new cases since March 2024.
    • The Shape of Risk: Always present, always changingAs circumstances shift and new challenges emerge, so do the associated risks. The landscape of risk is dynamic, requiring continuous assessment, adaptation, and mitigation strategies. Rather than disappearing, risk transforms, demanding ongoing vigilance and strategic foresight
    • The Shape of Risk: Always present, always changing As circumstances shift and new challenges emerge, so do the associated risks. The landscape of risk is dynamic, requiring continuous assessment, adaptation, and mitigation strategies. Rather than disappearing, risk transforms, demanding ongoing vigilance and strategic foresight
    • Empowering every investor: How factor analysis can supercharge your portfolioThe third and final part of the explainer video series of, where Vaibhav Jain of Share.Market—the online trading and investment app by PhonePe—decodes factor analysis, delving deep into the practical implications of the technology in portfolio building, and mitigating risks the stock market carries along.
    • Manappuram Finance Q1 Results: Profit rises to Rs 555 crore on strong gold loan growthIndian gold-loan provider Manappuram Finance reported a first-quarter profit rise on Tuesday, helped by strong gold-loan growth.
    • Pace 360 launches innovative ETF-based PMS fundPace 360 launched the Tresor Smart Alpha fund, an innovative ETF-focused PMS strategy targeting undervalued sectors of India's economy. The fund seeks to provide high returns with reduced risk through diverse ETF investments, using macroeconomic indicators to adjust allocations dynamically and mitigate risks during market fluctuations.
    • WHO warns: COVID-19 is making a comeback. Here's how to protect yourselfThe World Health Organization warned of a surge in COVID-19 cases across 84 countries, with European test positivity rates surpassing 20%. The rise is unusual for summer, suggesting the virus still circulates. WHO urged vigilance, vaccination, and cautious practices to mitigate the risk.
    Load More
    The Economic Times