Risk profile

Risk profile,

Definition of Risk profile:

  1. A forecast of the probable range of risks involved in an enterprise.

  2. A risk profile is an evaluation of an individual's willingness and ability to take risks. It can also refer to the threats to which an organization is exposed. A risk profile is important for determining a proper investment asset allocation for a portfolio. Organizations use a risk profile as a way to mitigate potential risks and threats.

  3. A risk profile identifies the acceptable level of risk an individual is prepared and able to accept. A corporation's risk profile attempts to determine how a willingness to take on risk (or an aversion to risk) will affect an overall decision-making strategy. The risk profile for an individual should determine that person's willingness and ability to take on risk. Risk in this sense refers to portfolio risk.

  4. Threats to which a company or organization are exposed. The risk profile will outline the number of risks, type of risk and potential effects of risks. This outline allows a business to anticipate additional costs or disruption to operations. Also describes the willingness of a company to take risks and how those risks will affect the operational strategy of the company.

How to use Risk profile in a sentence?

  1. A risk profile is an evaluation of an individual's willingness and ability to take risks.
  2. A risk profile is important for determining a proper investment asset allocation for a portfolio.
  3. Organizations use a risk profile as a way to mitigate potential risks and threats.

Meaning of Risk profile & Risk profile Definition