Uncertainty
Risk is the result of uncertainty. In general, the universe is an uncertain place and future outcomes are unknown although we can estimate their probabilities. We take on risk with each action or inaction that we choose. In other words, risk is inevitable.Managing Risk
Risk can be managed by identifying, assessing and treating risks. Risk management doesn't necessarily seek to minimize risk as engaging risk often has rewards. In fact, it's arguably impossible to achieve rewards in business or life in general without assuming risk. In many cases, risk management seeks to optimize the risk-reward ratio for a given risk tolerance.| Overview: Risk Definition | ||
Type | ||
Definition | The potential for loss or gain as a result of action or inaction. | |
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