calculated risk

calculated risk

A businessperson takes a calculated risk by investing in a new startup.

Definition

Noun: - A "calculated risk" refers to a chance of failure or loss that is taken after careful consideration of the potential outcomes and probabilities. It implies that the decision-maker has weighed the possible benefits against the likely dangers before proceeding.

Usage Examples
  • (She took a chance after analyzing the situation.)
  • (The doctor assessed the potential complications before proceeding.)
  • (The decision involves deliberate evaluation of risk and reward.)
Advanced Usage
  • "to take a calculated risk": to proceed with an action after evaluating the possible negative outcomes.

    • He decided to take a calculated risk by quitting his job to travel. (He made a deliberate choice despite knowing the financial uncertainty.)
  • "to be a calculated risk": to describe an action or decision that involves a known degree of danger.

    • The expedition to the remote island was a calculated risk, as the weather was unpredictable. (The mission was hazardous but planned with caution.)
Variants and Related Words
  • Calculated (adj): deliberately planned or considered.

    • Her calculated response avoided any conflict. (She thought carefully before speaking.)
  • Risk (n): the possibility of loss or injury.

    • There is a high risk of flooding in this area. (Danger exists.)
  • Risk (v): to expose to danger or loss.

    • He risked his savings on the new venture. (He put his money in a dangerous situation.)
Synonyms
  • Deliberate gamble: a choice made with full awareness of potential loss.
  • Informed risk: a risk taken with knowledge of the facts.
  • Prudent risk: a risk that is sensible given the circumstances.
Related Idioms
  • "Nothing ventured, nothing gained": a proverb meaning that taking a risk is necessary to achieve a reward.

    • She knew the investment was a calculated risk, but she believed in the company's potentialnothing ventured, nothing gained. (She accepted the chance for possible success.)
  • "Go out on a limb": to take a risky position or action.

    • He went out on a limb by supporting the controversial proposal, but it was a calculated risk. (He took a stand with potential consequences.)