Of course, in exchange for the safety you’ll receive a minuscule interest rate, meaning your return on investment over time will also be small. The risk of investing in mutual funds is determined by the underlying risks of the stocks, bonds, and other investments held by the fund. Differences include how readily investors can get their money when they need it, how fast their money will grow, and how safe their money will be. For instance, a stock investment in a company located in a country with an unstable government could go south quickly if the regime changes. The interest rate on savings generally is lower compared with investments. How Risk Analysis Works Risk analysis is the process of assessing the likelihood of an adverse event occurring within the corporate, government, or environmental sector.