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Risk

What is risk?

1.1 Definitions

 Risk is the chance that future events or results may not be as expected.

 ‘Risk is a condition in which there exists a quantifiable dispersion in the possible
outcomes from any activity.’ (CIMA official terminology)

 Risk can be defined as the combination of the probability of an event and its
consequences. (ISO Guide 73)

Note: some writers make a distinction between risk and uncertainty.

1.2 Positive and negative aspects of risk

Can have:

 downside risk

 upside risk.

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