Risk

Risk is the potential for uncontrolled loss of something of value. Values (such as physical health, social status, emotional well-being, or financial wealth) can be gained or lost when taking risk resulting from a given action or inaction, foreseen or unforeseen (planned or not planned). Risk can also be defined as the intentional interaction with uncertainty. Uncertainty is a potential, unpredictable, and uncontrollable outcome; risk is a consequence of action taken in spite of uncertainty.

Risk perception and the judgement of risk

Risk perception is the subjective judgement people make about the severity and probability of a risk, and may vary person to person. Any human endeavour carries some risk, but some are much riskier than others.

Risk in finance

In finance, risk is the chance that the return achieved on an investment will be different from that expected, and also takes into account the size of the difference. This includes the possibility of losing some or all of the original investment.

Risk in psychology

In psychology, risk is the potential of gaining or losing something of value. Values (such as physical health, social status, emotional well-being, or financial wealth) can be gained or lost when taking risk resulting from a given action or inaction, foreseen or unforeseen.

Risk in sociology

In sociology, risk is the potential of gaining or losing something of value. Values (such as physical health, social status, emotional well-being, or financial wealth) can be gained or lost when taking risk resulting from a given action or inaction, foreseen or unforeseen.

Risk in information security

In information security, risk is the potential that a given threat will exploit vulnerabilities of an asset or group of assets and thereby cause harm to the organization.

See also

• Risk analysis
• Risk assessment
• Risk management
• Risk perception
• Risk aversion
• Risk factor
• Risk communication

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