http://www.thefinancialblogger.com/the-chinese-definition-of-risk/ This is where your finance takes place Mon, 08 Sep 2008 03:58:42 +0000 http://wordpress.org/?v=2.6.1 http://www.thefinancialblogger.com/the-chinese-definition-of-risk/#comment-643 Customers Revenge Fri, 28 Sep 2007 15:15:47 +0000 http://www.thefinancialblogger.com/the-chinese-definition-of-risk/#comment-643 I like this post. Many people think risk is to be avoided, or a bad word. However, as you mention, there is not much that is a sure thing so everything is risky. To me, risk just means "unforeseen" or "unforeseeable". In the financial world risk is both about upside and downside. For example, you may have a project that doesn't either lose 50% or gain 2500%, which carries a risk of lose. The project may instead gain 10% or 100%, which is has a big uncertainty and therefore is risky, even though there is no way to lose money. I like this post. Many people think risk is to be avoided, or a bad word. However, as you mention, there is not much that is a sure thing so everything is risky. To me, risk just means “unforeseen” or “unforeseeable”. In the financial world risk is both about upside and downside. For example, you may have a project that doesn’t either lose 50% or gain 2500%, which carries a risk of lose. The project may instead gain 10% or 100%, which is has a big uncertainty and therefore is risky, even though there is no way to lose money.

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