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【单选题】
You are having lunch with a client who suddenly who suddenly asks you, “I noticed that you studied risk. To me, risk is when bad stuff can happen. Can you tell me, what is your definition of risk?” As far as the financial risk manager is concerned at least among the following potential responses to your client’s question. Which of the following definitions of risk is best?A.
Risk is the source or cause of a financial loss or cost
B.
Risk is a condition that increases the probability of a loss
C.
Risk is the size of a loss or cost; if a cost is greater, then it’s risk is greater
D.
Risk is the variability of adverse outcomes that are unexpected
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