: possibility of loss, injury, disease, or death <hypertension increases the risk of stroke>
: a person considered in terms of the possible bad effects of a particular course of treatment <a poor surgical risk>
: characterized by high risk or susceptibility (as to disease) <patients at risk of developing infections>
In economics and finance, an allowance for the hazard (risk) in an investment or loan. Default risk refers to the chance that a borrower will not repay a loan. If a banker believes that a borrower may not repay a loan, the banker will charge the true interest plus a premium for the default risk, the premium depending on the degree of presumed risk. All stock investment carries an implicit risk since there is no guarantee of return on investment. Trading or variability risk is the amount that the return may vary, up or down, from the expected return on investment.