Corporate Risk & Valuation · Entry 01 of 71
What is Risk?
Understanding uncertainty and the potential for loss
Core Definition
Risk refers to the possibility of an unfavorable outcome when you're exposed to something uncertain.
Key Principles
- All investments carry some level of risk: No investment is completely safe; there is always a trade-off between risk and reward.
- There is always some chance things may not go as expected: Real-world variables, market sentiment, and unexpected events introduce unpredictability.