Risk-Bearing Abilities

In the general framework for mapping resources proposed by Benoit F Leleux the following points are made with respect to Risk-Bearing Abilities:

• Capital suppliers differ in their abilities to actually take on risk
  • Where risk means the ultimate returns they will make on their investment
• Risk profiles range from:
  • Risk aversion
  • Complete risk sharing
• Investors will aim for diversifies portfolios
  • To seek uncorrelated risk and thereby minimizing it.

Part of: General framework for mapping resources