What term describes opportunities that are not pursued due to high risk?

The term that describes opportunities that are not pursued due to high risk is often related to the concept of 'cost,' particularly in the context of opportunity cost. When evaluating potential investments or projects, decision-makers must consider not only the potential returns but also the risks associated with those opportunities. High-risk opportunities might require significant resources or may not guarantee returns, leading organizations to decide against pursuing them to avoid financial loss or instability.

In accounting and finance, identifying opportunities that carry high risk enables organizations to weigh these risks against their potential rewards. Hence, the term 'cost' in this context reflects the trade-off of forgoing these high-risk opportunities, which may not yield sufficient benefit compared to their potential drawbacks. The other terms—return, benefit, and equity—do not encapsulate the idea of avoiding opportunities due to their risk profile. Return refers to the profit generated from an investment, benefit implies some positive outcome gained from an initiative, and equity relates to ownership or capital in a business. None of these terms directly capture the concept of opportunities being overlooked because they are deemed too risky.