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John Spacey, July 25, 2015 updated on November 05, 2022
Risk is the potential for loss or gain as a result of action or inaction. UncertaintyRisk 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 RiskRisk 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.|
| Type | | | Definition | The potential for loss or gain as a result of action or inaction. | | Related Concepts | |
Risks
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