risk

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Related to Specified risk materials: material risk, SRMS

Risk

Often defined as the standard deviation of the return on total investment. Degree of uncertainty of return on an asset. In context of asset pricing theory. See: Systematic risk.

Risk

The uncertainty associated with any investment. That is, risk is the possibility that the actual return on an investment will be different from its expected return. A vitally important concept in finance is the idea that an investment that carries a higher risk has the potential of a higher return. For example, a zero-risk investment, such as a U.S. Treasury security, has a low rate of return, while a stock in a start-up has the potential to make an investor very wealthy, but also the potential to lose one's entire investment. Certain types of risk are easier to quantify than others. To the extent that risk is quantifiable, it is generally calculated as the standard deviation on an investment's average return.

risk

The variability of returns from an investment. The greater the variability (in dividend fluctuation or security price, for example), the greater the risk. Because investors are generally averse to risk, investments with greater inherent risk must promise higher expected yields.

Risk.

Risk is the possibility you'll lose money if an investment you make provides a disappointing return. All investments carry a certain level of risk, since investment return is not guaranteed.

According to modern investment theory, the greater the risk you take in making an investment, the greater your return has the potential to be if the investment succeeds.

For example, investing in a startup company carries substantial risk, since there is no guarantee that it will be profitable. But if it is, you're in a position to realize a greater gain than if you had invested a similar amount in an already established company.

As a rule of thumb, if you are unwilling to take at least some investment risk, you are likely to limit your investment return.

risk

see UNCERTAINTY AND RISK.

risk

Uncertainty regarding the possibility of loss.

References in periodicals archive ?
the biggest gyudon restaurant chain, maintains that the safety of beef can be secured if brains and other specified risk materials are removed from cows.
At present, all current safeguards designed to prevent the spread of the disease are based on the premise that the dangerous substances can only be found in certain types of tissue known as Specified Risk Materials (SRMs) which are removed from all ruminant animals to keep them out of the food and feed chains.
Under the framework agreement, USDA's Agricultural Marketing Service (AMS) will establish a special beef export verification (BEV) program to assure that: 1) beef intended for the Japanese market comes from cattle that are less than 21 months of age at slaughter; 2) all specified risk materials (SRMs) are removed from animals of all ages; and 3) slaughterhouses be able to trace the production histories of cattle intended for the Japanese market to they can determine the age of each animal at slaughter.
The Committee ruled in favour of the UK and Germany by saying that the use of the Over Thirty Months Scheme (OTMS), the feed ban and the removal of specified risk materials (SRMs) were equivalent to cohort culling.
Specified Risk Materials (SRMs) known to harbor the highest concentrations of the infectious agent for BSE, such as the brain, skull, eyes, and spinal cord of cattle 30 months or older, and a portion of the small intestine and tonsils from all cattle, regardless of their age or health; and
EU measures for tackling BSE:- a ban on the feeding of mammalian meat and bone meal (MBM) to cattle, sheep and goats, as of July 1994- higher processing standards for the treatment of animal waste (133oC, 3 bar pressure for twenty minutes) to reduce infections to a minimum, as of April 1, 1997- surveillance measures for the detection, control and eradication of BSE, as of May 1,1998- the requirement to remove specified risk materials (SRMs) from human and animal food chains throughout the EU from October 1.
Finalized amendments to Canada's Food and Drug Regulations and Health of Animals Regulations will help ease international concerns about the potential for BSE (bovine spongiform encephalopathy) by requiring the removal from cattle at slaughter specified risk materials (SRM) that are considered to increase the risk of spreading BSE through the food chain, the Canadian Food Inspection Agency said Aug.
Community measures for tackling BSE:- a ban on the feeding of mammalian meat and bone meal (MBM) to cattle, sheep and goats, as of July 1994- higher processing standards for the treatment of animal waste (133oC, 3 bar pressure for twenty minutes) to reduce infections to a minimum, as of 1 April 1997- surveillance measures for the detection, control and eradication of BSE, as of 1 May 1998- the requirement to remove specified risk materials (SRMs) from cattle, sheep and goats throughout the EU from 1 October 2000 from the human and animal food chains.

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