Words / D / Business

downside risk

noun

B2CEFR level
50/100Rarity: uncommon
TechnicalRegister

The potential for an investment to lose value under unfavourable conditions.

We like the upside, but we need to understand the downside risk before committing.

Topic: Finance in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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