Risk definition

Word Origin mid 17th century: from French risque (noun), risquer (verb), from Italian risco ‘danger’ and rischiare ‘run into danger’. In this business, the risks and the rewards are high. The risk (that) we might fail made us work twice as hard. There is a small risk of brain damage.

This was one risk that paid off. He would not put their lives at risk.

In simple terms, risk is the possibility of something bad happening. Risk measures the uncertainty that an investor is willing to take to realize a gain from an investment. Description: Risks are of different types and originate from different situations. We have liquidity risk , sovereign risk , insurance risk.

Often dictionaries do not give specific definitions or combine it with the term risk. For example, one dictionary defines hazard as a danger or risk which helps explain why many people use the terms interchangeably. Assessing risk is just one part of the overall process used to control risks in your workplace.

For most small, low- risk businesses the steps you need to take are straightforward and are explained in these pages.

Various risks originate due to the uncertainty arising out of various factors that influence an investment or a. A situation involving exposure to danger. Definition of risk in English: risk. In idiomatic English one is at risk of, not for, a disease, injury, or other untoward event. The probability that an event will occur.

Similarly, there are lots of risk which are identified in social services: personal risk , risk of harm, corporate risk , financial risk and reputational risk. A risk is the potential of a situation or event to impact on the achievement of specific objectives Working with the risk owner, the project professional ensures that risks are clearly identified before moving on to the risk analysis step of the risk management process. Value at risk (VaR) is a measure of the risk of loss for investments. It estimates how much a set of investments might lose (with a given probability), given normal market conditions, in a set time period such as a day. The potential danger that threatens to harm or destroy an object, event, or person.

A risk that is specified in an insurance policy is a contingency which might or might not occur. The policy promises to reimburse the person who suffers a loss resulting from the risk for the amount of damage done up to the financial limits of the policy. An example of risk is a teenage boy on a car insurance policy. Insurance: General) If something or someone mitigates a risk , they make the effects of a loss or risk less unpleasant, harmful, or serious. Risk audits of the premises look at fire safety, fire systems, electrical safety, and industrial safety, and suggest suitable solutions to mitigate the risks at economical cost.

That effect can be positive or negative. Credit risk , or default risk , is the risk that a financial loss will be incurred if a counterparty to a (derivatives) transaction does not fulfil its financial obligations in a timely manner. It can be used by any organization regardless of its size, activity or sector.

Risk is inherent in everything we do.