Defining risk appetite is complex due to the slippery nature of risk itself, which can encompass various aspects such as potential loss, investment outcomes, or goal achievement. While risk is subjective and challenging to translate into an investment strategy, many opt to use volatility as a more tangible measure. Volatility represents the spread of potential outcomes from an investment, reflecting the width of the bell curve for investment returns. High volatility indicates a higher likelihood of extreme results, either substantial gains or losses.
It is becoming harder to get supplies into the enclave, which is facing a growing risk of famine. As fewer trucks are making it in, more aid is being dropped by plane. Our producer takes us on a flight. Why high risk does not always lead to high reward (09:40). And the ripple effect of rising cocoa prices for chocoholics (14:43).
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