How does risk profile increase?

A risk profile increases when an individual or organization takes on more exposure to potential losses, often through investments or financial decisions that involve higher volatility or uncertainty. Factors such as leveraging assets, diversifying into riskier markets, or pursuing aggressive growth strategies can contribute to this increase. Additionally, changes in market conditions, economic factors, or personal circumstances can elevate the overall risk appetite and exposure. Consequently, a higher risk profile entails a greater potential for both significant gains and substantial losses.