When applied to credit markets, the term "risk premium" is sometimes used in a broader sense to include expected losses, but I am thinking of risk premiums as the extra compensation for the uncertainty around anticipated economic and financial outcomes. This compensation is determined by both perception of risks and investor preferences, or risk aversion.
BIS central bankers’ speeches  1  private equity firms in Germany rose by almost 60% year-on-year to stand at € billion. Capital invested by German private equity companies thus totalled just under € billion last year. At roughly 0.1% of German GDP in 2009, investments are, however, still relatively insignificant.