Exposure: follow the link to see the free online dictionary definition http://www.thefreedictionary.com/exposure.
In recent discussions with a relative I was talking investing. Yes, discussing finances with a relative aside, I was struggling.
Why? Once again, I was…lost for words. Or, rather, suffering the loss of a particular word.
I was asking in particular about an opportunity that had come to my attention, and subsequently the potential risks involved.
How I framed this query, in my usual concise articulation, was: ‘So what might be the individual, you know, risk, err liability in this opportunity?’
Liability, (the free online dictionary definition is: http://www.thefreedictionary.com/liability), certainly describes those financial responsibilities associated with the ownership structure and obligations of those involved in a business. As my relative kindly assisted me to recall.
What I was trying to say was regarding the aggressiveness, and therefore risk of loss, associated with the opportunity from an investors perspective.
What my relative summed up astutely as the potential exposure.
Dammit. Why couldn’t I think of that?