Dictionary
risk profile
the various risks associated with something
The bank gave the company a high risk profile due to its large debts.
Phrase Bank
- The investment is suitable given the investor's financial situation and risk profile.
- The stock has a very attractive risk profile.
- Various pension funds have been created so that everyone can find a fund that suits their risk profile.
Additional Notes
- The greater the amount of risk that an investor is willing to take on, the greater the potential return. The reason for this is that investors need to be compensated for taking on additional risk.