The chance that an investment's actual return will be different than expected. Risk includes the possibility of losing some or all of the original investment. Different versions of risk are usually measured by calculating the standard deviation of the historical returns or average returns of a specific investment. A high standard deviation indicates a high degree of risk. Read more: Risk Definition | Investopedia http://www.investopedia.com/terms/r/risk.asp#ixzz3qE2I9SPs Follow us: Investopedia on Facebook MORE LINKS CPF Voluntary Contribution Rates What to Own during Rate Hikes? Fine Print of CPF Money Withdrawal 5 Financial Things to do in your 20s Singapore Finance Minister on Personal Finance Part 2 Repaying CPF Accrued Interest - Why? Reducing CPF Housing Accrued Interest As you can see from the above, Investopedia defines clearly what risk is. Schools preach on what risk is, how it is calculated and how it is quantified. But after reading this ......