Accepting risk

Accepting risk,

Definition of Accepting risk:

  1. Risk management technique appropriate where the cost of managing the risk is acceptable because the risk level is insufficient to justify the cost of risk avoidance.

  2. Accepting risk, or risk acceptance, occurs when a business or individual acknowledges that the potential loss from a risk is not great enough to warrant spending money to avoid it. Also known as "risk retention," it is an aspect of risk management commonly found in the business or investment fields.

  3. Risk acceptance posits that infrequent and small risks — ones that that do not have the ability to be catastrophic or otherwise too expensive — are worth accepting with the acknowledgement that any problems will be dealt with if and when they arise. Such a trade-off is a valuable tool in the process of prioritization and budgeting.

How to use Accepting risk in a sentence?

  1. Accepting risk, or risk retention, is a conscious strategy of acknowledging the possibility for small or infrequent risks without taking steps to hedge, insure, or avoid those risks.
  2. The rationale behind risk acceptance is that the costs to mitigate or avoid risks are too great to justify given the small probabilities of a hazard, or the small estimated impact it may have.
  3. Self-insurance is a form of risk acceptance. Insurance, on the other hand, transfers risk to a third-party.

Meaning of Accepting risk & Accepting risk Definition

Accepting Risk,

Accepting Risk Meanings:

You can define Accepting Risk as, Risk acceptance occurs when a company or individual realizes that the potential loss of a risk is not too great to spend to avoid it. Also known as risk management, it is an aspect of risk management that is often found in business or investment.

  • Risk acceptance or retention is a deliberate strategy of recognizing the potential for low or unexpected risk without taking steps to avoid, insure, or avoid the risk.
  • The reason for taking the risk is that there is a high cost to justify the costs of minimizing or avoiding this risk, given the low probability of loss or the less expected impact.
  • Car insurance is one way to take a risk. Instead, the insured transfers the risk to a third party.

Literal Meanings of Accepting Risk

Accepting:

Meanings of Accepting:
  1. Accept or agree to (some offer)

  2. Acknowledging or acknowledging (a sentence) as true or correct.

Sentences of Accepting
  1. Received a pen as a gift

  2. This initial statement was accepted by the men

Synonyms of Accepting

take receipt of, welcome, agree to receive, get, acquire, obtain, settled, take, fixed, receive, orthodox, acknowledged, recognized, set, traditional, habitual, come by, gain, confirmed

Risk:

Meanings of Risk:
  1. Exposure to loss, damage or loss (to someone or something of value)

  2. Conditions involved in exposure to hazards

Sentences of Risk
  1. Disobeying the law is very dangerous

Synonyms of Risk

jeopardize, hazard, put in jeopardy, menace, threat, imperil, put in danger, expose to danger, danger, likelihood, take a chance with, endanger, prospect, gamble, wager, gamble with, possibility, peril, probability, bet, put at risk, put on the line, fear, chance, venture

Accepting Risk,

Accepting Risk Definition:

  • Accepting Risk refers to Risk acceptance or acceptance occurs when a company or individual realizes that the total risk of the risk is not large enough to justify spending money to avoid it. Also known as risk management, it is an aspect of risk management that is often found in business or investment.

    • Risk acceptance or retention is a conscious strategy to recognize the possibility of a small or rare risk, without taking steps to meet, insure or avoid the risk.
    • The reason for accepting the risk is that the costs of mitigating or avoiding the risk are too high to be justified, given the low probability of loss or the expected impact.
    • Car insurance is one way to take a risk. Instead, the insurer transfers the risk to a third party.

Literal Meanings of Accepting Risk

Accepting:

Meanings of Accepting:
  1. To get approval or to take action (something offered).

  2. Recognize or recognize (a sentence) correct or correct.

Sentences of Accepting
  1. Got a pen as a gift.

Synonyms of Accepting

general, familiar, begin, depend on, have a crack/go/shot/stab at, wonted, mainstream, take responsibility for, get down to, typical, normal, take on, expected, assume, deal with, established, have faith in, regular, get cracking on, customary, standard, become involved in, participate in, put confidence in

Risk:

Meanings of Risk:
  1. Risk management situation

  2. Expose someone or something valuable for loss, damage or loss.

Synonyms of Risk

gamble (with)

Accepting Risk,

Accepting Risk: What is the Meaning of Accepting Risk?

  1. Will Canton specializes in investment and business legislation and regulation. Prior to that, he held senior positions at Investopedia and Kapitall Wire, and earned an MA and PhD in Economics from the New School for Social Research. Doctor of Philosophy of English Literature from NYU.

    • Risk acceptance or retention is a conscious strategy to identify the possibility of a small or rare risk, without taking any steps to cover, insure or avoid the risk.
    • The reason for taking the risk is that in view of the low probability of loss or the less expected effect, the costs involved in minimizing or avoiding the risk are too high to justify it.
    • Car insurance is a way to take risks. Instead, the insurer transfers the risk to a third party.

Literal Meanings of Accepting Risk

Accepting:

Meanings of Accepting:
  1. To get approval or to take action (something is offered).

  2. Recognize (a sentence) as true or false.

Synonyms of Accepting

go about, take up, accustomed, go for, popular, be responsible for, common, undertake, give something a whirl, conventional, prevailing, venture on, swallow, start, launch into, take on oneself, take something as gospel, commence, rely on, tackle, get to grips with, fall for, give credence to, address oneself to, count on, handle

Risk:

Meanings of Risk:
  1. Risk exposure situation.

  2. Expose someone or something of value for harm, loss or damage.