Defining the concept of risk applied in entrepreneurship. Conceptual delimitation risk - entrepreneurial uncertainty
Even though in many cases the terms of risk and uncertainty are similar, but they have to be delimited to understand the meaning of each individual as accurately as possible. The two terms are combined in different situations. No matter how well the risk is managed, uncertainty can not be removed...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2019-03-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/suplimente/International_Finance_and_Banking_Conference_FIBA_2019_XVII.pdf#page=39
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| Summary: | Even though in many cases the terms of risk and uncertainty are similar, but they have to be
delimited to understand the meaning of each individual as accurately as possible. The two terms are
combined in different situations. No matter how well the risk is managed, uncertainty can not be removed
because all possible situations and interdependencies can not be taken into account. Thus, a source of
risk can be considered uncertainty in itself if it is based on poor quality information about the actual
internal or external situation of the company. Also, in my conclusion, traditional financial theory
distinguishes between systematic risk and the particular risk, which reaches the company\’s overall risk.
Investors can reduce total risk with the two primary risk management instruments, namely
diversification and asset allocation. |
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| ISSN: | 1841-8678 1844-0029 |