There is little downside risk.

Then, in early 1980s, when Dr. Frank Sortino developed formal definition of downside risk as a better measure of investment risk than standard deviation, downside risk has become the industry standard for risk management.

The United States represents another downside risk for global growth.

New ways to borrow and to spread risk seemed to have little downside.

But they cannot rule out the downside risk of a synchronized global downturn.

This is not the only, or even the most important, downside risk facing the global economy.

To the extent that this is true of other advanced economies, the global economy faces an extended multi year period of low growth, with residual downside risk coming from policy gridlock and mistakes in Europe, the US, and elsewhere.

With current treatments, patients with low and intermediate risk disease have an excellent prognosis with cure rates above 90 for low risk and 70 90 for intermediate risk.

Back in the early 1980 s, financial engineers invented portfolio insurance, a fancy active hedging strategy for controlling downside risk.

The collateral limits the lenders downside risk, and the fear of losing the pledged assets encourages borrowers to act prudently.

Most of the downside risk to this scenario lies in the systemically important economies of Europe, the US, and China.

Similarly, a potential downside to quantitative easing is that low interest rates send capital to higher growth, high interest rate countries.

Recent market volatility has been partly a response to the apparent rise in the downside risk of policy paralysis or denial.

This appears to be a low risk activity.

Heavy borrowing also encourages owners and managers to go for broke, because it s the creditors who bear most of the downside risk.

That scenario implies slower growth possibly 1 1.5 percentage points slower in developing countries, including China, again with a preponderance of downside risk.

When low income borrowers took out a loan to buy their homes often 100 of the purchase price they typically could use the home as collateral without warranting the repayment with additional wealth or even their income. Thus, they were protected against the downside risk of falling house prices and profited by speculating on the upside risk of appreciation.

The Uptick s Downside

By issuing preferred shares with warrants (options), one reduces the public s downside risk and ensures that they participate in some of the upside potential.

Under the Convention, the risk of third party litigation appears low.

But, whereas private sector professionals are fired or have their salaries reduced for poor performance, Yam wanted private sector pay with none of the downside risk.

The new risk stratification will be based on the new INRGSS staging system, age (dichotomized at 18 months), tumor grade, N myc amplification, unbalanced 11q aberration, and ploidy into four pre treatment risk groups very low, low, intermediate, and high risk.

Before the crisis, some thought risk premia for developing countries were irrationally low.

Current low interest rates do not cover the risk that banks would take.

However, a low dose of hydrochlorothiazide does not seem to increase the risk.

Another downside risk is that the dollar funded carry trade may unravel, crashing the global asset bubble that it, together with the wave of monetary liquidity, has caused.

Banks play an essential role in all modern economies, but that role is not to assume a huge amount of risk, with the downside losses covered by society.

(Bolivia may, of course, not want to bear the risk of a fall in the price, so it may strike a deal to transfer some of the downside risk to foreign companies, giving them in exchange more of the upside potential.)

The borrower knows the risk is high, but tells the lender it is low.

To me, attempting to discern the economic prospects for 2011 is not a particularly interesting question the answer is bleak, with little upside potential and a lot of downside risk.

Moreover, low interest rate policies transfer inflation risk to all savers and to future generations.

Low health literacy reduces the success of treatment and increases the risk of medical error.

Such politically expedient language has a strategic downside.

Low inflation, no currency risk, decreased transaction costs, and greater transparency have made the euro a success.

Another 8 trillion are housing mortgages, which also carry little risk, given low loan to value ratios.

The public rewards democratic governments for dealing with the downside risk caused by competitive markets whether by spending to create jobs or by rescuing banks that have dodgy securities on their balance sheets.

The economic crisis has exacerbated the perceived downside of globalization.

But there are downside and upside risks to this scenario.

Third, contributing factors included low interest rates, compressed risk spreads, and global imbalances that accommodated low savings in the US, consumption in excess of output, and a mounting trade deficit.

After all, by capping spreads, the buyback facility would limit the downside risk while providing incentives to hold the bonds and wait for the upside a good reason, perhaps, to make the facility a temporary offer.

SEOUL Emerging economies are facing significant uncertainty and serious downside risks.

Given the high risk premiums currently prevailing in Europe, this percentage is too low to constitute a level playing field.

In the view of the Panel, such preserves are feasible, cost effective and pose a low risk of adverse impacts.

The United Kingdom and France are pressing hard for indirect military intervention supplying arms to the rebel side, in their view, would be a low cost, low risk, potentially high return option.

Requiring managers to apprise investors of downside exposure would help even more.