Risk Acceptance

Risk Acceptance

Risk Acceptance Jonathan Poland

Risk acceptance involves consciously deciding to take on a risk, often because the potential reward outweighs the potential negative consequences and aligns with an individual or organization’s risk tolerance. It is an important part of risk management, as it is often necessary to accept some level of risk in order to pursue opportunities and achieve goals. Risk acceptance is a common approach to managing risk, as it is impossible to achieve success without taking some level of risk. The following are a few examples:

Most investments involve some level of risk.

The entire insurance industry is based on assuming risk for a fee.

Derivatives are contracts that derive their value from an underlying entity such as exchange rates. They are often used to transfer risk between businesses for a fee.

Projects are an investment that a business makes to achieve its goals such as launching new products or services. Projects involve risks such as the potential for cost overruns.

Business Equity
Any equity you own in a business is typically at risk. Such risks are accepted in return for potential profits from the business.

Learn More…

Security Controls Jonathan Poland

Security Controls

IT security controls are measures that are implemented in order to reduce…

Fourth Industrial Revolution Jonathan Poland

Fourth Industrial Revolution

The fourth industrial revolution, also known as Industry 4.0, refers to the…

The Fundamentals of Business Mastery Jonathan Poland

The Fundamentals of Business Mastery

Overview Business comes down to just two areas: investments and deliverables. Leaders…

Digital Assets Jonathan Poland

Digital Assets

Digital assets are electronic representations of value that can be traded, stored,…

Product Requirements Jonathan Poland

Product Requirements

Product requirements refer to the documented expectations and specifications that outline the…

Commercialization Jonathan Poland


Commercialization is the process of introducing a new product or service into…

Team Strategy Jonathan Poland

Team Strategy

A team strategy is a plan that outlines how a team will…

Media Analysis Jonathan Poland

Media Analysis

Media analysis is the study of the structure, content, and methods of…

Technology Theories Jonathan Poland

Technology Theories

A technology theory is a broad idea that has significant implications for…

Jonathan Poland © 2023

Search the Database

Over 1,000 posts on topics ranging from strategy to operations, innovation to finance, technology to risk and much more…

Job Orientation Jonathan Poland

Job Orientation

Job orientation, also known as onboarding, is the process of introducing new…

What is a One Stop Shop? Jonathan Poland

What is a One Stop Shop?

A one stop shop is a business that offers a wide range…

Risk Evaluation Jonathan Poland

Risk Evaluation

Risk evaluation is the process of identifying and assessing the risks that…

Decision Framing Jonathan Poland

Decision Framing

Decision framing refers to the way in which a choice or dilemma…

Agile Change Management Jonathan Poland

Agile Change Management

Agile change management is the practice of leading continuous delivery processes in…

Change Resistance Jonathan Poland

Change Resistance

Change resistance is the act of derailing, slowing down, or preventing a…

Value Proposition Jonathan Poland

Value Proposition

A value proposition is a statement that explains the unique value that…

Structural Capital Jonathan Poland

Structural Capital

Structural capital is one of the three primary components of intellectual capital,…

Business Ethics Jonathan Poland

Business Ethics

Business ethics refer to the principles and values that guide the behavior…