Risk

Risk means the chance that something may turn out worse than expected. In simple terms, risk is the possibility of losing money or not getting the result you hoped for. Risk is important because every investment or financial decision has some level of uncertainty. Higher risk can sometimes bring higher potential returns, but it can also lead to bigger losses. For example, buying a fast-growing company’s stock may offer a chance for large gains, but the stock price may also fall sharply if the company disappoints investors. Risk is not the same as guaranteed loss. Risk means something bad could happen, not that it definitely will happen.