Why could a lenders expected return be lower when the risk premium is increased on a loan?

Question:

Why could a lender’s be lower when the risk premium is increased on a loan? In addition to the risk premium, how can a lender increase the on a wholesale loan? A retail loan?
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...