Risk as a Commodity

"Since all capital can be viewed as a commodity of some scarcity, the ability to acquire capital is not guaranteed."

• David R. Koenig - The Board Member's Guide to Risk, 2020

In his 2020 guide book, Koenig likens risk capital to a commodity of some scarcity. It is an economic good that is fungible and can be traded.

Risk capital is a scarce commodity, because there's only so much risk any organization can take to invest in new projects or collaborate with others.