- A measure of the negative effect of uncertainty on achieving objectives.
- A measure of the likelihood that an event may occur, how fast the event may impact the entity, and the estimated negative impact that an event may have on objectives.
Usage Notes: measurement of risk
- Risk, therefore, is measurable or estimable (unlike true uncertainty)
- High Risk, therefore, means that when considering the likelihood, velocity and negative impact of a future event(s)
- In most cases, likelihood, velocity and impact are not singular values. Rather, they are continua or distributions. For example, when considering the risk of automobile transportation, we must consider the distribution of likelihoods and impacts at these distributed likelihood values.
verb (used with an object)
- To put something in a state or situation where it may encounter undesirable effects.
- To risk capital means to put capital in a state or situation where it may be lost.
- To risk one’s life means to put health and safety in a state or situation where it may be lost
noun (colloquial use)
- An event or condition that creates a state where undesirable effects may be possible.
- The water on the floor is a risk to people who walk by. What the speaker really means is that the condition of “water on the floor” may lead to someone slipping.