Riskworthy describes a person, entity, or investment considered to be a relatively safe and reliable choice for bearing a particular risk. It implies a strong capacity to withstand potential losses and a high probability of meeting financial or performance obligations. The assessment of riskworthiness involves evaluating factors like financial stability, historical performance, creditworthiness, and management quality. Riskworthiness is not synonymous with being entirely risk-free, but rather signifies a calculated and manageable exposure to risk that is deemed acceptable given the potential rewards. Careful analysis is required to ascertain the level of risk involved.
Riskworthy meaning with examples
- The experienced venture capitalist deemed the startup 'riskworthy' after a thorough due diligence process, impressed by the founder's innovative technology and market understanding. While new, their plan was calculated.
- A seasoned lender considered the borrower 'riskworthy' due to their excellent credit score, consistent income, and a history of responsible financial management, allowing for a lower interest rate.
- The insurance company determined that the proposed project was 'riskworthy' and extended coverage, based on their safety protocols and well-defined emergency response plans for accidents.
- The ethical investor found the company 'riskworthy' after examining its environmental, social, and governance (ESG) practices, which demonstrated long-term responsibility and sustainability
- The city council approved the 'riskworthy' infrastructure bond issuance because of the stable local economy, anticipating the project to succeed and benefit everyone for years.