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Finance-Difference in Risk & Exposure

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(Querist)
12 June 2008 What is exactly the difference between "Risk" & "Exposure"???
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PC-www.bharadwajinstitute.com

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PC-www.bharadwajinstitute.com (Expert)
19 June 2008 Risk is the possiblity of loosing and

Exposure is the extent to which it can adversely affect.

Risk is inherent and Exposure is not so..
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Rushikesh

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Rushikesh (Expert)
24 June 2008 Risk meaning you have undertaken a risk to loose your money etc.
While exposure decides the scope upto which you can take risk.
For example in shares, the DP offers you an exposure of say, 4 times of your limit but how much of this. risk should be taken is upto you
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