I want you to explain to me in what situation such a lender could ever have a loss. I want you to explain to me why it's reasonable that the lender makes profi

I want you to explain to me in what situation such a lender could ever have a loss. I want you to explain to me why it's reasonable that the lender makes profits when things go right, but the public has to take the loss when things go wrong. Isn't in the nature of a free market that lending is an inherently risky business ?