资本市场，财务管理和投资管理[外文翻译].doc

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Capital Markets, Financial Management, and Investment Management
Risk Defined
There is no shortage of definitions for risk. In everyday parlance, risk is often viewed as something that is negative. But we know that some risks lead to economic gains while others have purely negative consequences. For example, the purchase of a lottery ticket involves an action that results in the risk of the loss equal to the cost of the ticket but potentially has a substantial ary reward. In contrast, the risk of death or injury from a random shooting is purely a negative consequence.
In the corporate world, accepting risks is necessary to obtain petitive advantage and generate a profit. In fact, “risk” is derived from the Italian verb riscare, which means “to dare.” Corporations “dare to” generate profits by taking advantage of the opportunistic side of risk. The former Delaware Supreme Court Chief Justice Norman Veasey (2000, pp. 26–27) in a decision wrote:
Potential profit often corresponds to the potential risk. . . . Stockholders’ investment interests . . . will be advanced if corporate directors and managers honestly assess risk and reward and accept for the corporation the highest available risk-adjusted returns that are above the firm’s cost of capital.
We have already seen various definitions of risk throughout this book and there will be more in later chapters. In the discussion of capital budgeting in Chapter 14, various measures of risk were introduced. However, risk as used at the corporate level has a more general meaning than does its use in capital budgeting. For example, distinguishes between the following types of risk that are useful for ultimately managing risks: financial risk, peril, accident, and hazard.
When a corporation is exposed to an event that can cause a shortfall in a targeted financial measure or value, this type of risk is called financial risk.
The financial measure or value could be earnings per share, return on equi