Capital Risk

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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 ?
Capital risks, for example, show that there are fears of rising rates in the US, causing foreign investors to cash out of the market to safe havens.
Meanwhile, as risk managers team up with the corresponding insurance managers throughout their organizations to effect enterprise risk management and as regulations increase on public companies to identify capital risks and develop systems to manage them, the insurance industry must evolve to provide enterprisewide services.

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