 For example, if a company has $20,000 to invest in a number of high, moderate, and low risk projects, the decision would depend upon how much risk the company is willing to take on, and if the returns offered by each category offset this perceived risk.Continuing with this example, if the high risk offered only 20% return, while the moderate offered 19% return, engineers and managers would most likely choose the moderate risk project, as its return is far more favorable for its category.The high risk project failed to offer proper returns to warrant its risk status.