#RiskRewardRatio The risk-reward ratio is typically expressed as a value for the assessed risk separated by a colon from the value for the prospective reward. Typically, the ratio quantifies the relationship between the potential dollars lost if the investment or action fails versus the dollars realized if everything goes as planned -- that is, the reward. For example, a risk-reward ratio of 1:3 would mean that for every $1 at risk, there is a potential profit or reward of $3.