Risk
Risk is any chance that some event will occur. Commonly, risk is associated with unfavorable events, or threats. Favorable risks are called opportunities.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Risk. The chance that some unfavorable event will occur. In a financial market context, the chance that an investment will provide a low or negative return.
According to Management by Robbins and Coulter (14th edition),
- Risk. A situation in which a decision maker is able to estimate the likelihood of certain outcomes.
According to the BABOK Guide (3rd edition),
- Risk (business analysis). The effect of uncertainty on the value of a change, a solution, or the enterprise. See also residual risk.
According to the Corporate Strategy by Lynch (4th edition),
- Risk. Strategy evaluation criterion associated with a strategy that does not expose the organization to unnecessary hazards or to an unreasonable degree of danger.
According to the ITIL Foundation 4e by Axelos,
- Risk. A possible event that could cause harm or loss, or make it more difficult to achieve objectives. Can also be defined as uncertainty of outcome, and can be used in the context of measuring the probability of positive outcomes as well as negative outcomes.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
