Lower-risk

Describing something that presents a smaller probability of negative consequences, hazards, or financial losses compared to other options. It implies a reduced level of danger, uncertainty, or potential for harm. This term is often applied in fields like finance, healthcare, insurance, and technology, where risk assessment and mitigation are crucial. A lower-risk situation doesn't necessarily guarantee complete safety or success but offers a more favorable outcome statistically or empirically. The degree of 'lower' is relative and context-dependent, requiring comparison against a defined benchmark or alternative.

Lower-risk meaning with examples

• Investing in government bonds is generally considered a lower-risk strategy compared to investing in the stock market, especially for risk-averse investors. These bonds offer a more stable return, although it may be modest compared to potential gains from the stock market.
• A physician may recommend a lower-risk medication with fewer side effects initially when treating a patient with a mild ailment. This is a sensible first step if the medication is effective.
• Implementing a lower-risk marketing campaign might involve targeting a well-defined, existing customer base rather than launching an entirely new product and attempting to attract a broader, unfamiliar audience.
• In software development, iterative releases following AGILE methods present a lower-risk option compared to big-bang deployments, allowing for continuous testing and feedback before scaling the product.
• Choosing a lower-risk insurance policy often means paying a higher premium, but the policy will provide comprehensive cover, thus, ensuring financial security with no room for major surprise losses.