This paper explores ways in which risk taking is entwined with financial considerations, and examines the trade-off between acceptable levels of risk and associated costs. The changing identity of holders of funds available for risk investment, combined with the evolving attitudes of fund-seekers as to the nature of acceptable risks, points to the need for a re-examination of traditional approaches. In formulating public policy aimed at reducing risks a more formal consideration of the overall cost of Government measures, set against the achievements anticipated from the measure concerned, is required whether or not that cost falls on Government. In commerce, increased use of joint ventures is seen as a likely vehicle for the development of largescale risk activities, with a loan guarantee scheme to assist in nurturing new enterprises and small businesses. Finally, the role of pension funds is examined and a case made for the consideration of index linked gilts as a means both of assisting the Government with the orderly handling of the National Debt and meeting the pension schemes' need to match liabilities that are susceptible to inflationary pressures.