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:

Investing
Most investments involve some level of risk.

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

Derivatives
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
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.

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Project Metrics Jonathan Poland

Project Metrics

Project metrics are methods for measuring the progress and performance of a project. They are typically tracked continuously in order…

Strategic Management Jonathan Poland

Strategic Management

Strategic management involves the formulation and implementation of the major goals and initiatives taken by a company’s top management on…

Consumer Goods Jonathan Poland

Consumer Goods

Consumer goods are goods that are produced and purchased for personal or household use. These goods are typically consumed or…

Critical Mass Jonathan Poland

Critical Mass

In economics, critical mass refers to the minimum size a company needs to be in order to effectively compete in…

Value Added Reseller Jonathan Poland

Value Added Reseller

A value added reseller (VAR) is a company that buys products from manufacturers or distributors and then resells them to…

Innovation Process Jonathan Poland

Innovation Process

Innovation refers to the process of making significant improvements by taking bold steps forward, rather than making incremental progress. This…

Demand Risk Jonathan Poland

Demand Risk

Demand risk refers to the possibility of experiencing financial loss or other negative consequences due to a discrepancy between the…

Job Levels Jonathan Poland

Job Levels

Job levels, also known as career levels or job grades, refer to the hierarchical structure within an organization. They are…

Program Controls Jonathan Poland

Program Controls

Program controls are the mechanisms that enable a computer program to execute a set of instructions in a specific order…

Latest Thinking

Qualified Small Business Stock (QSBS) Jonathan Poland

Qualified Small Business Stock (QSBS)

Qualified Small Business Stock (QSBS) refers to a special classification of stock in the United States that offers significant tax…

Barrick Gold Jonathan Poland

Barrick Gold

Barrick Gold Corporation (NYSE: GOLD) is a significant player in the global economy, particularly within the gold mining industry. Its…

Newmont Corporation Jonathan Poland

Newmont Corporation

Newmont Corporation (NYSE: NEM), being the world’s largest gold mining corporation, with extensive operations in mining and production of not…

Gold is Money Jonathan Poland

Gold is Money

Overview The history of gold as money spans thousands of years and has played a pivotal role in the economic…

What is Leadership? Jonathan Poland

What is Leadership?

In the modern business world, where rapid changes, technological advancements, and global challenges are the norm, effective leadership is more…

Product Durability Jonathan Poland

Product Durability

A durable product, often referred to as a durable good, is a product that does not quickly wear out or,…

Durable Competitive Advantage Jonathan Poland

Durable Competitive Advantage

The most important aspect of durability is market fit. Unique super simple products or services that does change much if…

Praxeology Jonathan Poland

Praxeology

Praxeology is the study of human action, particularly as it pertains to decision-making and the pursuit of goals. The term…

Business Models Jonathan Poland

Business Models

Business models define how a company creates, delivers, and captures value. There are numerous business models, each tailored to specific…