CALCULATED RISK Meaning and
Definition
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A calculated risk is the act of making a well-informed decision after thoroughly assessing the potential rewards and potential consequences of a particular action or decision. It involves carefully evaluating the available information, weighing the potential benefits against the possible drawbacks, and considering the likelihood of success or failure.
Taking a calculated risk requires a rational analysis and a thoughtful consideration of all relevant factors that may influence the outcome. This includes considering the probability of success, the level of uncertainty involved, and the potential impact on one's goals or objectives. It also involves a realistic assessment of one's own abilities, resources, and limitations.
The calculated risk approach involves striking a balance between caution and ambition. It recognizes that taking no risks may result in missed opportunities, stagnation, or limited growth, while overly risky actions may lead to needless losses or negative outcomes. By taking calculated risks, individuals or organizations aim to optimize their chances of achieving desired outcomes, while minimizing potential losses or adverse consequences.
Calculating the risk often involves using various risk management techniques, such as conducting risk assessments, developing contingency plans, and implementing mitigation strategies. These measures help individuals and organizations to make informed decisions by reducing uncertainty and providing a level of confidence in their chosen course of action.
Overall, a calculated risk involves carefully balancing the potential rewards with the potential costs and risks, resulting in a strategic, informed decision that seeks to maximize the likelihood of success while minimizing potential negative outcomes.
Common Misspellings for CALCULATED RISK
- xalculated risk
- valculated risk
- falculated risk
- dalculated risk
- czlculated risk
- cslculated risk
- cwlculated risk
- cqlculated risk
- cakculated risk
- capculated risk
- caoculated risk
- calxulated risk
- calvulated risk
- calfulated risk
- caldulated risk
- calcylated risk
- calchlated risk
- calcjlated risk
- calcilated risk
- calc8lated risk
Etymology of CALCULATED RISK
The word "calculated" is derived from the Latin word "calculatus", which is the past participle of "calculare", meaning "to reckon or count". This Latin term is derived from "calculus", which originally referred to a small stone used in mathematical calculations. Over time, "calculus" came to represent any form of calculating or counting.
The term "risk" is also derived from Latin, from the word "risicum" or "risicum", which means "danger or hazard". It ultimately comes from the Latin verb "risicare", which means "to dare or venture". The term "risk" entered the English language in the 17th century, initially referring to the hazards and pitfalls associated with maritime trade.
The phrase "calculated risk" originated from the combination of these two terms. It refers to making a carefully considered decision or taking a chance after assessing the potential risks involved.
Idioms with the word CALCULATED RISK
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calculated risk
A calculated risk refers to a decision or action that has been carefully considered and planned with the potential risks and benefits being weighed before taking any action. It involves taking a chance that has been thought through and analyzed in order to maximize the chances of success.
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