Risk Probability | The estimated probability that a risk will occur. |
Risk Impact | The estimated costs of a risk if it should occur. |
Risk Severity | Using categories such as high, medium and low for risk impact instead of a number. |
Risk Value | An estimate of the cost of a risk calculated as probability × impact. |
Risk Exposure | The sum of all risk values that apply to a situation. |
Risk Exposure Ratio | Risk exposure as a ratio of total assets, cost or resources involved in the risk. |
Risk Reduction | The reduction in risk exposure that is achieved by risk treatment. |
Residual Risk | The risk exposure that remains after risk treatment. |
Secondary Risk | The new risk exposures that are created by risk treatments. |
Risk Management Effectiveness | The ratio of risk reduction to residual risk including secondary risk. |
Risk Losses | Actual real world costs of risks that have occurred. |
Cost of Risk | The cost of risks that occur plus the costs of managing risk. |
