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# What is an Infinite Risk?

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Infinite risk is a potential for an event or ongoing problem that has infinite impact.
As an example, the loss of our only known habitable planet due to factors such as an environment problem or war can arguably be considered an infinite impact. This can be modeled with two scenarios: one in which humans don't last forever due to loss of our habitat and one in which we somehow manage to survive to infinity.
Infinite risks have an interesting mathematical property in that they aren't affected much by probability. In fact, any non-zero probability of an infinite risk results in a probable loss of infinity no matter how small the probability becomes.
Risk = 0.1 × ∞ = ∞
Risk = 0.01 × ∞ = ∞
Risk = 0.000001 × ∞ = ∞
Risk = 0.00000000001 × ∞ = ∞
This means that infinite risks represent a large threat even if they have a very low probability of occurring. It can be demonstrated that reducing the probability of an infinite risk to zero, always has a return on investment of ∞, as long as your costs are less than ∞. For example, if you spend \$1,000,000,000,000 to eliminate an infinite risk with a 0.00000001 chance of occurring your return on investment is ∞.
return on investment = ((gain – cost) / cost) * 100
= (((0.00000001*∞) - 1,000,000,000,000) / 1,000,000,000,000) * 100
= ∞
The mathematical properties of infinite risk suggest that investments to eliminate an global catastrophic risk can achieve high return on investment even if the probability of that risk is extremely low.
 Overview: Infinite Risk Type Risk Definition A non-zero probability of an infinite loss. Value Infinite risk is essentially an abstract concept, much like infinity itself, that can be used to examine the far edges of a risk distribution. Related Concepts

## Risks

This is the complete list of articles we have written about risks.
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Risk-Reward Ratio
Seasonal Risk
Secondary Risk
Security Risk
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Supply Risk
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Upside Risk
Weather

A list of common business risks.

## Risk Treatment

The five things that can be done about risk.

## Risk Mitigation

A list of techniques for reducing risk.

## Positive Risk

The potential that you'll achieve too much of a good thing.

Any risk that people have a strong aversion too.

## Risk vs Opportunity

The surprising similarities between risk and opportunity.

## Risk Management vs Contingency Planning

The difference between risk management and contingency planning.

## Uncertainty

The common types of uncertainty in decision making and strategy.

## Inventory Risk

The common types of inventory risk.

An overview of common business risk management techniques.

## Top

Simplicable is a modern encyclopedia that has been updated daily since 2010.

A list of interesting business theories.

## Knowledge Work

A definition of knowledge work with examples.

## Office Politics

A list of social processes, absurdities and strategies related to office politics.

## Product Development

A guide to product development.

## Types Of Knowledge

The differences between types of knowledge.

## Trough Of Sorrow

An overview of the trough of sorrow.

A list of common business models.

## Marketing

A list of key marketing strategies.