What Is an Income Risk?

Risk income refers to a type of income compensation obtained by commodity producers and managers for bearing the risks of operation and decision-making. It is the inevitable result of the development of the commodity economy. In the process of commodity production and operation, a large number of uncertain factors (such as economic, political, technical, natural, and human factors) interfere, causing the actual revenue of the production and operation to deviate from the expected revenue. The production and business operators must bear the decision may fail and suffer. To the risk of economic loss. The income obtained by the operator based on his decision-making ability and experience and the correct decision on the investment of funds is the risk income. ^[1]