Rewarded risk - Revision history

imported>Doug Williamson: Add links.

2016-07-14T09:10:13Z

Add links.

← Older revision		Revision as of 09:10, 14 July 2016
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	== See also ==		== See also ==
			* [[Aggressive]]
			* [[Conservative]]
	* [[Return]]		* [[Return]]
	* [[Risk appetite]]		* [[Risk appetite]]

imported>Doug Williamson: Add link.

2016-07-14T08:52:15Z

Add link.

← Older revision		Revision as of 08:52, 14 July 2016
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	== See also ==		== See also ==
	* [[Return]]		* [[Return]]
			* [[Risk appetite]]
	* [[Shareholder value]]		* [[Shareholder value]]
	* [[Strategic analysis]]		* [[Strategic analysis]]

imported>Doug Williamson: Make shareholders plural.

2015-03-23T17:14:38Z

Make shareholders plural.

← Older revision		Revision as of 17:14, 23 March 2015
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	An example of a rewarded risk is a capital investment decision, such as acquiring a business or a new machine, launching a new product and so on.		An example of a rewarded risk is a capital investment decision, such as acquiring a business or a new machine, launching a new product and so on.

	Such an investment will be made because there is a reasonable expectation of an acceptable net positive return within the organisation's strategic plan, and hence an expectation of an increase in ~~shareholder~~ wealth.		Such an investment will be made because there is a reasonable expectation of an acceptable net positive return within the organisation's strategic plan, and hence an expectation of an increase in shareholders' wealth.

imported>Doug Williamson: Link with Strategic analysis and Shareholder value pages and mention 'strategic plan' explicitly.

2015-03-23T17:03:32Z

Link with Strategic analysis and Shareholder value pages and mention 'strategic plan' explicitly.

← Older revision		Revision as of 17:03, 23 March 2015
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	Rewarded and unrewarded risk can be a useful way to analyse risks.		Rewarded and unrewarded risk can be a useful way to analyse risks.

	It can indicate whether a particular risk is a legitimate risk for the organisation (and consistent with the organisation’s ~~strategy~~) or not.		It can indicate whether a particular risk is a legitimate risk for the organisation (and consistent with the organisation’s strategic plan) or not.


	An example of a rewarded risk is a capital investment decision, such as acquiring a business or a new machine, launching a new product and so on.		An example of a rewarded risk is a capital investment decision, such as acquiring a business or a new machine, launching a new product and so on.

	Such an investment will be made because there is a reasonable expectation of an acceptable net positive return, and hence an expectation of an increase in shareholder wealth.		Such an investment will be made because there is a reasonable expectation of an acceptable net positive return within the organisation's strategic plan, and hence an expectation of an increase in shareholder wealth.


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	== See also ==		== See also ==
	* [[Return]]		* [[Return]]
			* [[Shareholder value]]
			* [[Strategic analysis]]
	* [[Unrewarded risk]]		* [[Unrewarded risk]]

	[[Category:Financial_risk_management]]		[[Category:Financial_risk_management]]

imported>Doug Williamson: Align with Unrewarded risk page.

2015-03-23T16:27:35Z

Align with Unrewarded risk page.

← Older revision		Revision as of 16:27, 23 March 2015
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	~~A rewarded risk is one which is associated with an expected benefit for the party accepting the~~ risk.		Rewarded and unrewarded risk can be a useful way to analyse risks.

	~~For example~~ a ~~greater net return (or~~ a ~~smaller net cost)~~ for the ~~party accepting~~ the risk.		It can indicate whether a particular risk is a legitimate risk for the organisation (and consistent with the organisation’s strategy) or not.


			An example of a rewarded risk is a capital investment decision, such as acquiring a business or a new machine, launching a new product and so on.

			Such an investment will be made because there is a reasonable expectation of an acceptable net positive return, and hence an expectation of an increase in shareholder wealth.

	~~So it may be rational - depending on the size and likelihood of the expected benefit, and the organisation's risk appetite and policy - to accept a rewarded risk.~~

imported>Doug Williamson: Spacing and category added

2013-08-20T14:17:50Z

Spacing and category added

← Older revision		Revision as of 14:17, 20 August 2013
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	A rewarded risk is one which is associated with an expected benefit for the party accepting the risk.		A rewarded risk is one which is associated with an expected benefit for the party accepting the risk.

	For example a greater net return (or a smaller net cost) for the party accepting the risk.		For example a greater net return (or a smaller net cost) for the party accepting the risk.

	So it may be rational - depending on the size and likelihood of the expected benefit, and the organisation's risk appetite and policy - to accept a rewarded risk.		So it may be rational - depending on the size and likelihood of the expected benefit, and the organisation's risk appetite and policy - to accept a rewarded risk.


	== See also ==		== See also ==
	* [[Return]]		* [[Return]]
	* [[Unrewarded risk]]		* [[Unrewarded risk]]


			[[Category:Financial_risk_management]]

imported>Administrator: CSV import

2012-10-23T14:20:35Z

CSV import

New page

A rewarded risk is one which is associated with an expected benefit for the party accepting the risk.
For example a greater net return (or a smaller net cost) for the party accepting the risk.
So it may be rational - depending on the size and likelihood of the expected benefit, and the organisation's risk appetite and policy - to accept a rewarded risk.

== See also ==
* [[Return]]
* [[Unrewarded risk]]