calculated risk

Meaning

A calculated risk is a hazard or chance of failure that is taken after careful consideration of the potential outcomes, benefits, and consequences. It is not reckless behavior, but rather a deliberate, strategic decision where the odds of success are deemed favorable.

Examples

• Investing in the new software platform was a calculated risk, but it paid off handsomely.

  Investing in the new software platform was a calculated risk, but it paid off handsomely.

• Entering the European market now is a calculated risk we are willing to take.

  Entering the European market now is a calculated risk we are willing to take.

• The CEO took a calculated risk when she decided to pivot the company's product line.

  The CEO took a calculated risk when she decided to pivot the company's product line.

• We shouldn't gamble with our budget, but this project represents a reasonable, calculated risk.

  We shouldn't gamble with our budget, but this project represents a reasonable, calculated risk.

• Before launching the campaign, we did extensive research to ensure it was a calculated risk.

  Before launching the campaign, we did extensive research to ensure it was a calculated risk.

Common Mistakes

• ✗ We took a calculating risk.

  ✓ We took a calculated risk.

  'Calculated' is the past participle used as an adjective here, meaning planned or deliberate. 'Calculating' means scheming or selfish.

• ✗ It was a planned risk.

  ✓ It was a calculated risk.

  While 'planned' is similar, 'calculated risk' is the standard business collocation used to describe weighing pros and cons before acting.

Related Expressions

Practice

• Expanding our team during a recession is a ___, but we believe the demand is there.

  💡 A deliberate hazard taken after careful thought

  Show answer

  calculated risk

• She doesn't make reckless choices; every move she makes is a ___.

  💡 A strategic and analyzed chance

  Show answer

  calculated risk