A Risk is a possibility of negative impact happening that is an unknown event or a situation of uncertainty. The Risk is the measure of human injury, environmental damage, or economic loss in terms of both the incident likelihood and the magnitude of the loss or injury. The Risk can be defined as the intentional interaction with uncertainty that may be a potential, unpredictable, unmeasurable, and uncontrollable outcome.
Reference Definition by ISO: According to ISO 9000, Risk is the “effect of uncertainty on an expected result” and an effect is a positive or negative deviation from what is expected. The following two paragraphs will explain what this means. This definition recognizes that all of us operate in an uncertain world. Whenever we try to achieve something, there’s always the chance that things will not go according to plan. Sometimes we get positive results and sometimes we get negative results and occasionally we get both. Because of this, we need to reduce uncertainty as much as possible. Uncertainty (or lack of certainty) is a state or condition that involves a deficiency of information and leads to inadequate or incomplete knowledge or understanding. In the context of risk management, uncertainty exists whenever the knowledge or understanding of an event, consequence, or likelihood is inadequate or incomplete. While this definition argues that risk can be positive as well as negative, a note acknowledges that “the term risk is sometimes used when there is only the possibility of negative consequences”.
Related Definitions in the Project: The Project Management; Risk Management
