Problem
Everyone is probably aware of the overall concept of risk and return. We are well aware of the "painful" side of risks present in our investments or 401k plans. However, we want to broaden our awareness that "risk" is not necessarily a bad word. In other words, we want to take a look at the risk balance.
For your initial post discuss the concept of "no risk, no return" and its corollary "high risk, high return". How does risk appetite relate to these concepts?
In your subsequent post(s) discuss "risk-adjusted return" and how this concept differs from the traditional view of risk and return. What are some general ways that companies can manage their risk?