Difference between revisions of "Introduction to entrepreneurship/IENT101/Nature/Risk"

Revision as of 20:47, 4 October 2018 (view source) Cgoode (Talk | contribs) (Adding WEnote) ← Older edit		Latest revision as of 21:15, 16 October 2018 (view source) Cgoode (Talk | contribs) (Removing references)
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	Anyone thinking about starting a new business or venture of any kind needs to think about possible risks and reward.		Anyone thinking about starting a new business or venture of any kind needs to think about possible risks and reward.
−	* Risk can be defined as the chance of loss. Generally, the higher the risk, the higher the potential for loss. <ref>www.stlouisfed.org/education_resources.</ref>
−	* A Reward is a positive incentive that makes people better off. <ref>www.stlouisfed.org/education_resources.</ref>	+	There are two elements to risk assessment: The likelihood that the bad thing will happen and the impact if the bad thing does happen.
−	There is usually a direct relationship between the risk of a loss and the expected rate of return. The higher the risk of loss, the greater the potential reward. Conversely, the lower the risk of loss, the lower the potential reward.	+	A reward is an incentive - it ''may'' be financial, but doesn't have to be. It could be positive feedback, customer loyalty, reputation, and so on.
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	'''WEnote'''		'''WEnote'''
−	Are you surprised to learn that famous entrepreneurs have failed? Or did you know this is all part of the journey?	+	Did anything surprise you in these readings? What do you need to think about in particular in terms of risk and reward?
−	Let us know your reaction to what you have seen and read on this page. For example:	+	Let us know your thoughts. For example:
−	* ''I was most surprised to read about NAME failing because ...''	+	* ''I was most surprised to discover ...''
−	* ''I think it takes ... to pick yourself up after a failure like ...''	+	* ''I think entrepreneurs need to ...''
	{{:Introduction_to_entrepreneurship/Links/IENT101/WEnote-p}}		{{:Introduction_to_entrepreneurship/Links/IENT101/WEnote-p}}
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−	}}
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−	'''References'''
−	<references>

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Latest revision as of 21:15, 16 October 2018

Anyone thinking about starting a new business or venture of any kind needs to think about possible risks and reward.

There are two elements to risk assessment: The likelihood that the bad thing will happen and the impact if the bad thing does happen.

A reward is an incentive - it may be financial, but doesn't have to be. It could be positive feedback, customer loyalty, reputation, and so on.

WEnote

Did anything surprise you in these readings? What do you need to think about in particular in terms of risk and reward?

Let us know your thoughts. For example:

• I was most surprised to discover ...
• I think entrepreneurs need to ...

Post your comment(s) below and then look on the course feed page to see what others have posted.

If you prefer you can create a post on your learning journal blog. Be sure to label or tag your post IENT101.
Note: Your comment will be displayed in the course feed.