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Definition of Risk

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Risk is the potential for loss or gain as a result of action or inaction.

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.
Related Concepts

Risks

This is the complete list of articles we have written about risks.
Accept
AI Risk
Risk Avoidance
Bankability
Brand Risk
Budget Risk
Business Risks
Change Risk
Competition
Compliance Risk
Concentration Risk
Cost Risk
Country Risk
Credit Risk
Demand Risk
Dread Risk
Economic Risk
Exchange Rates
Existential Risk
External Risk
Financial Risk
Force Majeure
Good Risk
Hazards
Human Error
Risk Identification
Infinite Risk
Inflation Risk
Inherent Risk
Innovation
Interest Rates
Internal Risks
Investing Risk
Legal Risk
Liquidity Risk
Model Risk
Moment Of Risk
Natural Disasters
Negative Risk
Operations Risk
Passive Risk
Personal Risk
Political Risk
Process Risk
Procurement Risk
Product Risk
Project Risk
Pure Risk
Quality Risk
Recession Risk
Risk Mitigation
Refinancing Risk
Regulatory Risk
Reputational Risk
Residual Risk
Resource Risk
Revenue Risk
Risk Appetite
Risk Aversion
Risk Examples
Risk Management
Risk Management Process
Risk Matrix
Risk Meaning
Risk Measurement
Risk Taking
Risk Tolerance
Risk Triggers
Risk vs Issue
Risk vs Opportunity
Risk vs Uncertainty
Risk-Reward Ratio
Seasonal Risk
Secondary Risk
Security Risk
Settlement Risk
Risk Sharing
Speculative Risk
Strategic Risk
Strategy Risk
Supply Risk
Systemic Risk
Tactical Risk
Taxation Risk
Technology Risk
Risk Transfer
Uncertainty
Unforced Error
Unknowns
Upside Risk
Weather
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Risk

An extensive list of risks and risk management techniques.

Risk Opposite

The true opposites of risk.

Negative Risk

The definition of negative risk with examples.

Safety

An overview of safety with examples.

Debt

An overview of debt with examples.

Natural Disasters

An overview of the common types of natural disaster.

Unforced Error

The definition of unforced error with examples.

Internal Risks

The definition of internal risk with examples.

Business Impact

A list of business impacts.

Risk Measurement

An overview of different ways to measure risk with examples.

Risk Impact Examples

A list of common risk impacts with a few detailed examples.

Change Risk

An overview of change risk with a list of examples.

Good Risk Examples

An overview of good risk with examples.

Risk Analysis

A complete guide to risk analysis.

Risk Exposure

A definition of risk exposure with example calculations.

Risk Capacity

An overview of risk capacity with examples.

External Context

An overview of external context with examples.

Internal Context

An overview of internal context with examples.

Risk Objectives

Examples of measurable risk objectives.

Risk Costs

An overview of risk costs with a list of examples.

Risk Characteristics

The basic characteristics of risk.

Risk Measures

A list of the common measurements for business risk.

Risk Decision

An overview of risk decisions with examples.

Revenue Impact

An overview of revenue impact with positive and negative examples.

PESTEL Analysis

An overview of PESTEL analysis with examples.
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