Capital Risk

Capital Risk

The risk that a company will lose the amount of an investment. An investor takes on capital risk each time he/she invests in anything other than a risk-free security. Capital risk is limited to the amount one has invested. For example, if one buys a $1,000 bond, he/she will not lose more than $1,000.
References in periodicals archive ?
GoldSpot is a technology company that leverages machine learning to reduce capital risk, while working to increase efficiencies and success rates in resource exploration and investment.
Investors and stakeholders also need to cooperate, soon agree with commercial banks in calculating and managing this capital risk.
If you're saving over the short term, it's wise not to take much capital risk.
The project targets increasing seed capital and early-stage capital, as well as capital risk available to innovative startups facing higher risks and newly-established SMEs with great potential for growth and job creation, the statement read.
However, GE's equity value is likely to remain volatile given the range of expectations, Mitchell tells investors in a research note titled "FCF outlook battered but largely intact; Divestments cover Capital risk." The analyst hopes that the evaluation of "all options" to de-risk GE Capital leads to more meaningful outcomes than the stated effort to "leverage EFS capabilities to enable Industrial orders." He keeps an Overweight rating on shares of General Electric with an unchanged price target of $13.
A combination of weak investment results and poor underwriting results could heighten capital risk.
This will be over and above Rs 1.35 lakh crore capital infusion announced by the government for the public sector banks (PSBs) in October last year to meet global capital risk norms called Basel III.
A diversified portfolio with broad exposure to different markets and assets should smooth out volatility and limit capital risk. Without a diversified portfolio, you are testing fate in a bear market.
The explanatory variable market concentration is represented by the Herfindahl-Hirschman Index (HHI) in deposits (Berger & Humphrey, 1997; Fu & Heffernan, 2009; Pan, 2005), while the study evaluates four types of risks: capital risk, credit risk, liquidity risks, and overall risk (Zhang et al., 2013).
It is like investing in debt; the capital risk is lower, and there exist ways to mitigate it.
Willis is the leading global risk management and human capital risk advisor, with more than 400 offices globally, delivering personalized service locally.
Schmidt previously served as director of underwriting for Capital Risk Underwriters Inc.

Full browser ?