Noun

Singular risk

Plural risks

risk (plural risks)

1. A possible, usually negative, outcome, e.g., a danger.
   • 2006: BBC News website, Farmers warned over skin cancer read at [1] on 14 May 2006

     There was also a "degree of complacency" that the weather in the country was not good enough to present a health risk.

2. The likelihood of a negative outcome.
   • 2006: Trever Ramsey on BBC News website, Exercise 'cuts skin cancer risk' read at [2] on 14 May 2006

     Taking regular exercise, coupled with a healthy diet, reduced the risk of several types of cancer.

3. (Formal use in business, engineering, etc.) The potential (conventionally negative) impact of an event, determined by combining the likelihood of the event occurring with the impact should it occur.
   • 2002: Decisioneering Inc website, What is risk? read at [3] on 14 May 2006

     If there is a 25% chance of running over schedule, costing you a $100 out of your own pocket, that might be a risk you are willing to take. But if you have a 5% chance of running overschedule, knowing that there is a $10,000 penalty, you might be less willing to take that risk.

Derived terms

• market risk
• credit risk
• currency risk
• operational risk
• political risk
• financial risk
• residual risk
• health risk
• inflation risk
• risk management
• risk assessment
• risk analysis

Risk is a concept that denotes the precise probability of specific eventualities. Technically, the notion of risk is independent from the notion of value and, as such, eventualities may have both beneficial and adverse consequences. However, in general usage the convention is to focus only on potential negative impact to some characteristic of value that may arise from a future event.

RISK can be defined as “the threat or probability that an action or event will adversely or beneficially affect an organisation's ability to achieve its objectives”[1]. In simple terms risk is ‘Uncertainty of Outcome’, either from pursuing a future positive opportunity, or an existing negative threat in trying to achieve a current objective.