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Risk vs Uncertainty

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Risk is the potential for a loss due to uncertainty. Uncertainty is an unknown event, quantity, quality or outcome.

Risk vs Uncertainty

Without uncertainty there is no risk. That is to say that when outcomes are fully known in advance, decisions can be optimized to minimize losses. Risk is inherent in all action and inaction because future outcomes always involve an element of uncertainty.
Risk vs Uncertainty
Risk
Uncertainty
Definition
The potential for losses due to uncertainty.
An unknown event, quality, quantity or outcome.
Relationship
Risk is a result of uncertainty.
Uncertainty causes risk.

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