investment-risks

Vocabulary Word

Definition

'Investment risks' refer to the chance of losing money on an investment. It's like betting on a horse race, where the potential for gain is often accompanied by a risk of loss.

Examples in Different Contexts

In Market Analysis, identifying 'investment risks' involves analyzing market trends and economic indicators to forecast potential risks. A market analyst might say, 'Our report outlines the various investment risks, including market, credit, and liquidity risks, that could affect your portfolio.'

Practice Scenarios

Business

Scenario:

We have a novel business proposition at hand, but it requires significant capital. We need to evaluate whether the projected returns justify the associated risks.

Response:

I agree, assessing investment risks is crucial before we commit to this project.

Impact

Scenario:

This renewable energy project has a huge potential for positive societal impact but the technology is still experimental. It's important to consider the long-term sustainability.

Response:

I concur. We should measure the investment risks against the potential societal benefits.