Uncompensated risk

{{Short description|In investments, level of additional risk}}

In investment, uncompensated risk is the level of additional risk for which no additional returns are generated and, when taking systematic withdrawals, make the probability of failure unacceptably high. It is reduced by diversifying investment.{{cite book |title=Banking Laws of North Carolina |date=2018 |publisher=LexisNexis |isbn=9781522147176 |page=2041}}