Definition of Risk/Reward Calculus

The ratio of risks to potential gains for an investment or a decision. This term is often used when making a decision and needing to understand the potential gains versus risks.

Example: The company is investing in self-driving car technology, but analysts are skeptical about the risk/reward calculus because of the high R&D costs.

Variations: risk to reward ratio, risk/reward ratio, risk to reward calculus


Usage of "Risk/Reward Calculus" by Country

Business English is used in many different countries around the world. Some of the words and phrases listed on this site will be understood everywhere Business English is used, but some words and phrases are only used in specific countries. The map below shows where "Risk/Reward Calculus" is most commonly used.

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About This Site

Jargonism is a Business English dictionary. You can learn about words and phrases that are commonly used in the workplace like Circle Back, Thought Leader, and Offsite. We also have a Word of the Day, which is a daily Business English vocabulary word that is commonly used in the workplace.

On this site, we also have templates on how to communicate effectively at work, such as requesting PTO, declining a promotion, and taking a sick day.

Word of the Day

Date: 09/25/2021

Word: Close It Out

Definition: To mark something as completed.

Example: This task has been fixed, so let's close it out within the task tracker.