In economics, a nominal value is an economic value expressed in dollar terms.
A real value is a value expressed in dollars adjusted for purchasing power. In other words a value adjusted for inflation and deflation so that the real purchasing power is held constant.
A person earns $100,000 in one year and $103,000 in the next year. Inflation was 3% in the second year.
The nominal earnings were $100,000 and $103,000. The real earnings, or purchasing power held constant earnings, are $100,000 in both years.
In finance risk is defined as uncertainty that is consequential (nontrivial).
The two main methods of dealing with financial risk are the matching of assets to goals & diversifying.