Risk-tolerant

Risk-tolerant refers to an individual's or an organization's willingness to engage in activities that involve uncertain outcomes or potential losses in exchange for possible gains. This characteristic is essential in fields such as finance, investment, and business decision-making, where embracing risk can lead to higher returns. risk-tolerant individuals typically understand and accept the volatility associated with their choices.

Risk-tolerant meaning with examples

• As a risk-tolerant investor, Sarah chose to focus her portfolio on emerging markets, believing that their potential for high returns justified the inherent uncertainties that come with investing in less stable economies.
• The startup was led by a risk-tolerant group of entrepreneurs who were eager to innovate and disrupt traditional markets, understanding that their aggressive strategies might lead to failures but also big payoffs if successful.
• In the technology sector, firms often seek risk-tolerant employees who can adapt quickly to change and take bold initiatives, knowing that not every project will succeed but that creativity and resilience often lead to breakthroughs.
• A corporation looking to expand must find a risk-tolerant partner willing to share the financial burden of a new venture, as without a shared eagerness for taking calculated risks, the project may never get off the ground.