Wikipedia
For an individual, a risk premium is the minimum amount of money by which the expected return on a risky asset must exceed the known return on a risk-free asset in order to induce an individual to hold the risky asset rather than the risk-free asset. It is positive if the person is risk averse. Thus it is the minimum willingness to accept compensation for the risk.
The certainty equivalent, a related concept, is the guaranteed amount of money that an individual would view as equally desirable as a risky asset.
For market outcomes, a risk premium is the actual excess of the expected return on a risky asset over the known return on the risk-free asset.
Usage examples of "risk premium".
American banks and speculators have been charging a whopping 16 per cent risk premium above normal in return for the dollars needed to back this currency scheme.