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Many people think of risk as the danger of losing money. Is this the same way...

Many people think of risk as the danger of losing money. Is this the same way that risk is defined in finance?

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Answer #1

Yes, this is sort of the same way that risk is defined in finance.

Risk in Finanace is the possibility that shareholders, investors, or other financial stakeholders in a firm or venture will lose money if the company's cash flow proves inadequate to meet its obligations.

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