risk appetite

Definition

The level of risk that a person or corporation is willing to take in order to execute a strategy. "During the height of the recession, investors' risk appetite shifted to cautious following huge declines in the stock market."

Use risk appetite in a sentence

You need to figure out how big of a risk appetite you have before you decide which stocks to take on.

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We had a really high risk appetite and were willing to take a lot more chances in our work than we needed to.

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Our company has an extremly low risk appetite because everyone is afraid that the economy will take another hard hit.

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