Definition Of Risk Quality
The outperformance of high quality stocks over low quality stocks is well documented in financial literature although the actual measure of quality is disputed.
Definition of risk quality. Definition 2 the potential that products and services will not be fit for purpose. In the world of quality management systems qms the nature of the relationship between risk management and preventive actions is often confused and misunderstood. Risk measures the uncertainty that an investor is willing to take to realize a gain from an investment. Any business that can t manage the quality of its processes and products tends to fall apart.
Indeed some believe that a thorough risk assessment process replaces the need for preventive action. We have liquidity risk sovereign risk insurance risk business risk default risk etc. The quality factor refers to the tendency of high quality stocks with typically more stable earnings stronger balance sheets and higher margins to outperform low quality stocks over a long time horizon. Quality risk management qrm is a systematic process for the assessment control communication review of risks to quality of the drug product across the product lifecycle the evaluation of the risk to quality should be based on scientific knowledge ultimately link to the protection of the patient.
Quality risk definition in the english cobuild dictionary for learners quality risk meaning explained see also quality circle quality control quality time total quality management english vocabulary. Definition 3 the potential that products and services will fail to meet a set of quality goals. Quality is critical to sales cost control productivity risk management and compliance. Risks are of different types and originate from different situations.
Definition 1 potential failure to adhere to specifications.